UAE's BRICS engagement underscores economic connectivity and Global South cooperation

The Hindu - Opinion · 10 Sept 2026 · 2 min read
Prelims · International relations Mains · GS2 International relations High relevance

The UAE's active participation in BRICS since January 2024 highlights its strategy of leveraging economic diversity for tangible benefits like trade facilitation and resilient supply chains, with India's 2026 Chairship providing a framework for implementation.

Key points

BRICS expansion: The UAE became a full BRICS member in January 2024, joining an economic bloc representing 45% of global population and 28% of global GDP, expanding its geopolitical influence.

Economic complementarity: BRICS members' diverse economic structures (energy exporters, manufacturing hubs, capital sources) create synergies for trade, investment, and technology transfer across the Global South.

New Development Bank (NDB): With over $40 billion approved for infrastructure projects, the NDB serves as BRICS' financial arm, supporting sustainable development goals through alternative financing mechanisms.

UAE-India CEPA: The Comprehensive Economic Partnership Agreement boosted non-oil bilateral trade by 17% to $76 billion in 2025, targeting $200 billion by 2032, demonstrating BRICS' potential for bilateral gains.

[GS3-Economy] The UAE's sovereign wealth funds ($2.9 trillion) and 38 CEPAs position it as a connectivity hub, aligning with BRICS' goals of resilient global value chains and financial integration.

Multilateralism shift: BRICS challenges Western-dominated economic governance, offering platforms like the NDB as alternatives to IMF/World Bank for developing nations.

India's 2026 Chairship: Focused on resilience, innovation, and sustainability, it provides strategic direction for institutionalizing BRICS cooperation mechanisms beyond summit diplomacy.

[GS2-International Relations] The UAE's bridge-building role between Middle East, Africa, and Asia complements India's 'Neighborhood First' policy and Global South leadership aspirations.

Way Forward: BRICS should institutionalize sectoral working groups on supply chains, establish a digital trade framework, and expand local currency settlement mechanisms to reduce dollar dependency.

Key terms

New Development Bank (NDB)

Established by BRICS in 2015, the NDB is a multilateral development bank headquartered in Shanghai. It finances infrastructure and sustainable development projects in member states and emerging economies, with authorized capital of $100 billion. The NDB represents BRICS' challenge to Western-dominated financial architecture, offering loans in local currencies to reduce dollar dependency.

Comprehensive Economic Partnership Agreement (CEPA)

A free trade agreement that eliminates tariffs on most goods while covering services, investment, and economic cooperation. The UAE-India CEPA (2022) was India's first with a Middle Eastern nation, creating a template for South-South trade integration. Such agreements are key instruments for BRICS' intra-bloc economic connectivity.

Global South

Refers to developing countries primarily in Asia, Africa, and Latin America. BRICS positions itself as a voice for Global South interests in global governance reform, challenging Northern dominance in institutions like UNSC, IMF, and WTO. The term gained geopolitical significance post-Cold War.

Economic Complementarity

When nations with differing resource endowments, production capabilities, and market structures create mutual economic benefits through trade and investment. BRICS leverages this through partnerships like UAE's energy exports with India's manufacturing, reducing external dependencies and building South-South value chains.