The Banking Executive Magzine - July 2025 Issue

BRICS 2025 BRICS 2025 AT A GLANCE The 2025 BRICS (Brazil, Russia, India, China, and South Africa) Sum- mit in Rio de Janeiro marked a trans- formative moment for the bloc, showcasing its expanded member- ship and ambitious agenda for re- shaping global governance. The addition of new members to BRICS in 2025 (Egypt, Ethiopia, Iran, United Arab Emirates (UAE), Saudi Arabia, and Indonesia) marks a strategic pivot toward a multipolar world order and amplifies the bloc’s voice as a champion of the Global South. This article highlights the wider and the long-term impact of BRICS ex- pansion with particular focus on im- pact on trade, technology, energy, world balance of power, the dollar dominance, and the new emerging world geopolitics. The article con- cludes with a roadmap for Arab banks to navigate the risk and chal- lenges of BRICS 2025 expansion and to leverage the opportunities. SIGNIFICANCE OF THE NEW BRICS MEMBERS Each new BRICS member brings unique strengths: • Indonesia: Southeast Asia’s largest economy and democracy and including Pa- cific trade routes. • Iran & Saudi Arabia: Major energy producers; their in- clusion signals BRICS’ growing in- fluence in the Middle East. • Egypt & Ethiopia: Key African players. Egypt bolster BRICS’ continental reach and de- velopment agenda. • UAE: Financial and tech hub. UAE adds innovation and investment clout. BRICS has now a strategic impact. It represents 45% of the world’s popu- lation and 35% of global Gross Do- mestic Product (GDP). With Iran, Saudi Arabia, and UAE, BRICS con- trols a significant share of global oil and gas production. Its expansion counters Western, led institutions and offers alternatives to dollar, based systems. Its expansion also strengthens cooperation among de- veloping nations on climate, health, and tech governance. New members support calls to re- form the UN Security Council and World Trade Organization (WTO). BRICS expansion fuels efforts to settle trade in local currencies and reduce reliance on the United States (US) dollar. The bloc now reflects a broader spectrum of cultures, reli- gions, and political systems, enhanc- ing legitimacy. IMPACT ON GLOBAL TRADE The expansion of BRICS is already shaking up global trade dynamics. BRICS+ now accounts for nearly half the world’s population and around 40% of global GDP. Intra, BRICS trade has surged, with 40% of global goods trade now occurring among member states. New members like ISSUE 199 JULY 2025 the BANKING EXECUTIVE 43