The UAE’s inclusion in the BRICS bloc of emerging economies – should it accept the group’s invitation – is expected to open new business avenues and investment opportunities, providing the country with greater leverage globally, according to forecasts from a business setup company in the Gulf region.
According to PRO Partner Group (PPG) – a leading business setup company in Abu Dhabi, Dubai, the wider UAE, Oman, Saudi Arabia and Qatar – the UAE’s involvement in BRICS is “expected to have a profound impact on the business environment” in the country.
“As this membership comes into effect on January 1st, (we) anticipate a buildup of interest leading up to this date, with growing enthusiasm for investment opportunities for BRICS countries within the UAE and the broader GCC region,” said PPG’s Commercial Director, James Swallow.
The industries expected to benefit the most from a BRICS membership are e-commerce, import/export and real estate. Swallow said they “lend themselves easily to inviting new international businesses” as the trust and security of engaging with the UAE increases through the BRICS relationship.
A BRICS membership will also help the gulf country in its efforts to diversify the economy away from fossil fuel by attracting a varied group of businesses looking to expand and establish themselves in the Middle East, according to Swallow.
Ahead of this year’s BRICS summit in August, talks of de-dollarization – moving away from the US dollar – and conducting trade in local currencies gained a lot of traction. With the bloc extending its invitation to the UAE, speculations regarding its relations with the West and stance on de-dollarization increased.
According to Swallow, the UAE dirham is pegged to the US dollar, and that is expected to stay the same even if the country joins BRICS.
“The cosmopolitan and international nature of the UAE’s occupants and businesses opens itself up to wide currency variety anyway,” Swallow said. “We have experienced companies establishing themselves in the UAE, banking and trading with many different currencies, depending on counterparty requirements.”
“We can foresee that this will continue with the UAE’s involvement in BRICS.”