The United Arab Emirates is a welcome new addition to Brics

The United Arab Emirates (UAE), one of the six countries invited to join Brics at the bloc’s summit in August 2023, officially became a member at the beginning of 2024. It is one of the three Persian Gulf states in addition to Saudi Arabia and Iran that have become permanent members. Coming on the heels of its successful hosting of the global climate summit COP28, its Brics membership is testament to its growing geopolitical profile and increasing influence on the international stage. Its hosting of the climate summit is part of its preparation for a post-oil economy centred on environmental sustainability and diversification, which is in line with the Brics 2020-2025 strategy.

While it is the smallest country by population in the new expanded Brics with just under 10-million people, the emirates federation is punching above its weight on a host of indicators which justified its selection. The country has a GDP of more than half a trillion dollars (about R9.4-trillion), a GDP per capita of more than $44,000 — the highest in the bloc — and the sixth-largest crude oil reserves in the world, which have been the bedrock of its thriving economy. The UAE is among the top 10 oil producers in the world, at 4.23-million barrels a day, or 4% of global production. This has made it a key member of the Organisation of Petroleum Exporting Countries (Opec) whose effective influence on the global energy markets is well documented.

The country’s 1,300km coastline on the Persian Gulf and its proximity to the Strait of Hormuz — a maritime choke point on the Indian Ocean through which 21million barrels of oil are shipped every day — have made the UAE a country of immense geostrategic significance.

Its interest in Brics is part of diversifying its global strategic partnerships and positioning itself to retain its strategic autonomy during the geopolitical rivalry between major powers such as the US on one hand and Russia and China on the other. It had previously readily aligned itself with US positions and policies on global issues. However, it started to question Washington’s commitment to its security after the US failure to deal with regional security threats. During its non-permanent membership of the UN Security Council in March 2022, the UAE with India and China abstained from a Security Council resolution condemning Russia’s invasion of Ukraine. This was the Arab state’s most significant show of foreign policy autonomy, which may have come as a shock to the West which had long come to count on UAE support on international issues. Moreover, following the US’s confrontational policies towards China and Russia would have been economically counterproductive for the UAE, which enjoys significant trade and investment relations with the two major powers.

The reorientation of the UAE’s foreign policy is also visible regionally, where it has normalised its relations with several hitherto hostile countries, namely Iran, Qatar, Israel and Turkey. Cordial relations with these key Middle Eastern states will magnify the UAE’s influence in a region which Brics cannot afford to ignore if it is to realise its ambitions of forging an alternative global order.

Awash with petrodollars, the UAE boasts some of the world’s largest sovereign wealth funds, namely the Abu Dhabi Investment Authority worth $683bn and the Investment Corporation of Dubai worth $229bn. The country has used these funds to invest in non-oil economic sectors such as tourism, transport, finance and technology, among others, as part of the economic diversification plan. This has yielded positive outcomes as the share of the oil sector in the national GDP declined significantly from almost 50% in 1980 to only 16% in 2019.

The UAE’s two flagship global brands are testament to the success of its economic diversification strategy. Its national airline, Emirates, has become the largest international airline in the world flying to more than 150 destinations in 85 countries and operating 269 aircraft, thus making it a global transport hub. The Dubai Ports World (DP World) has also established itself as a significant player in global maritime logistics and trade. The company has more than 80 marine and inland ports (including seven in Africa) serving a huge 70,000 vessels annually in 50 countries. As such, with the expertise it has garnered in managing global logistics and transport operations, the UAE stands ready to contribute to the

Brics goal of fostering South-South co-operation through investing in infrastructure to facilitate the flow of goods, people, ideas and information.

The Gulf state’s impressive track record in managing maritime infrastructure is a stark contrast to South

Africa’s failure to manage its maritime port infrastructure which continues to undermine the country’s economic potential. The UAE has successfully marketed itself as the investment destination of choice in the Middle East through, among other measures, approving 100% foreign ownership of businesses, protecting intellectual property rights, strengthening economic governance and creating conducive conditions to attract talent from all over the world.

In the spirit of South-South co-operation, the UAE has used its considerable wealth to increase its investments in Africa. In the past 12 years, the UAE has invested about $60bn in Africa’s energy, transport, logistics and infrastructure sectors, making it the fourth-largest source of foreign direct investment for the continent after China, the US and the EU. At last year’s Africa Climate Summit, the UAE pledged to invest $4.5bn in renewable energy projects across the continent to aid its transition to the green economy. A company based in the UAE, Masdar, also promised to invest up to $10bn in clean energy projects across Africa by 2030. Moreover, the UAE government launched the Etihad 7 project in 2022 aimed at providing clean energy to 100-million people on the continent. This is consistent with the strategy for the Brics Economic Partnership 2025 which commits to expanding access to renewable energy.

While it is the smallest country by population in the expanded Brics, the UAE is punching above its weight on a host of indicators