Saudi Arabia is reportedly delaying its formal entry into the BRICS alliance to avoid upsetting the United States.
A Delicate Balancing Act
According to sources, despite attending a recent BRICS meeting in Brazil and even appearing on the group’s website as a member, Saudi Arabia is hesitant to fully commit. This is a tricky situation for Saudi Arabia, which needs to balance its relationship with China (its biggest oil customer) and the US (its key security and technology partner).
The US Factor
The US is a significant player in this decision. A potential $100 billion arms deal is on the table. Furthermore, past threats from former President Trump to impose 100% tariffs on all BRICS nations if they moved away from the US dollar are likely influencing Saudi Arabia’s cautious approach. Trump’s statement emphasized the US’s unwillingness to let BRICS nations create a new currency to challenge the dollar’s dominance.
BRICS Expansion and Geopolitics
BRICS, initially formed by Brazil, Russia, India, China, and South Africa, has expanded in 2024 to include countries like Iran, Egypt, Ethiopia, and the UAE. Saudi Arabia’s inclusion is seen as a significant geopolitical move, making its decision to delay membership all the more noteworthy. The country is clearly weighing the economic benefits of BRICS membership against the potential risks to its relationship with the US.