Saudi Arabia negotiates entry into the BRICS Bank

The NDB (New Development Bank) is in a “qualified dialogue” with Saudi Arabia.

The Middle Eastern country intends to become the 9th member of the institution, also known as the BRICS Bank.

The NDB confirmed the talks to the Financial Times, but Saudi Arabia did not comment.

The negotiations coincide with the NDB’s evaluation of its financing options, which have been questioned after Russia – one of the founding members and main financiers – invaded Ukraine and was subjected to economic sanctions.

The bank has halted financing new projects from Russia to assure investors that it will cooperate with the limitations imposed on Moscow.

Shwani Muthoo, managing director of the NDB’s independent appraisal office, said the institution’s priority is to expand financing options.

“We are struggling to mobilize resources,” he said.

Saudi Arabia is the world’s largest exporter of crude oil. It also seeks closer relations with China, one of the founding countries of the NDB.

THE NDB AND THE BRICS

The Brics group comprises five major emerging economies: Brazil, Russia, India, China, and South Africa.

The members cooperate in several areas and seek to be an alternative force to the Western economies in the international arena.

In addition to the founding countries, the United Arab Emirates, Egypt, and Bangladesh are also part of the bank.

One of the BRICS organizations is the NDB. The headquarters are in Shanghai, China.

The institution is currently chaired by the former president of Brazil, Dilma Rousseff (PT).

She began her term in March 2023 and runs until July 2025. Her inauguration ceremony was held in April – when President Luiz Inácio Lula da Silva (PT) visited China.

With information from Poder360

News Brazil, English news Brazil, BRICS, New Development Bank (NDB)