Egypt officially joined the BRICS group of countries on Tuesday, becoming the 11th member of the bloc, which is led by Russia and includes China, India, Brazil, and South Africa. The bloc accounts for 25% of global trade.
BRICS is one of the most important economic blocs in the world, due to the economic weight of its member countries. Ahmed Khattab, an economic expert and member of the Egyptian-Canadian Business Council, confirmed this, saying that “Egypt’s joining BRICS, which is the largest economic bloc and includes major economies such as Russia, China, India, South Africa, Saudi Arabia, and the United Arab Emirates, will represent a positive step for the Egyptian economy, as it will contribute to increasing the volume of trade between Egypt and the bloc’s countries.”
In an exclusive statement to RT, Khattab explained that “one of the characteristics of this bloc is that it allows countries to settle their trade with each other in their local currencies.” He noted that if Egypt imports goods from Russia or China, the value of the goods will be settled in local currency, which will help to reduce pressure on the dollar.
Khattab also pointed out that Egypt has a strategic location for North African and African countries, which will enhance the role of the Suez Canal and Egypt’s economic and logistical role. It will also help to create jobs and provide a more attractive business environment for investment.
He added that 25% of the world’s economy is located in BRICS countries, noting that the bloc did not choose Egypt randomly, but based on analyzes and studies of its important role, especially since the accession came with the United Arab Emirates and Saudi Arabia, which have advanced economies.
Khattab stressed that this will have a positive impact on the Egyptian economy, but it will take some time to conclude a number of agreements that will allow trade between Egypt and BRICS member countries. He noted that with the beginning of the new year 2024, we expect to see a strong start for the Egyptian economy, as it will reduce demand for the dollar.
It is worth noting that on August 24, 2023, Egypt’s accession to one of the strongest economic blocs in the world, BRICS, was announced during the last BRICS summit held in South Africa.
