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BRICS enables an alternative payment system facilitating investment in emerging market: UAE expert

The 16th BRICS Summit was held in Kazan, Russia, from October 22 to 24, marking the first year following the expansion of the organization. The Kazan Declaration was unveiled at the 16th BRICS Summit, emphasizing multilateralism, global development, and security.

Starting from Jan. 1, 2024, Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia became official members of BRICS. As the first summit following the BRICS expansion, the 16th BRICS Summit witnessed the arrival of the Greater BRICS cooperation era.

To gain an in-depth understanding of Greater BRICS cooperation, GDToday invited Mr. Shahid Hussain from the United Arab Emirates, Founder and CEO at Green Proposition Consulting Firm, to share his insights on the 16th BRICS Summit as an expert from one of the new members of BRICS.

BRICS represents the aspiration of half of the world population

BRICS countries have come together for the shared pursuit of the overarching trend of peace and development. The UAE's joining of BRICS serves as the best proof.

"The world should be more multilateral. But sadly, you can see the world heading in one direction," Mr. Shahid Hussain added. "The West needs to hear the aspirations of half of the world's population. So, the UAE is going to lead multilateralism on the global stage via BRICS."

As a significant force in promoting a more inclusive and representative global governance system, BRICS works for true multilateralism. Facing global economic challenges, BRICS established the New Development Bank to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries. To reduce reliance on the traditional financial system, a new payment system has been created to facilitate transactions among BRICS nations and beyond.

Shahid believes that decision-makers cannot close their eyes. As BRICS moves forward, it will have more members from emerging markets and the Global South, meeting the aspirations of developing countries and the needs of world peace.

BRICS payment system provides a better-matched option for developing countries

At this summit, the host country, Russia, promotes the cross-border payment system among BRICS nations, proposing the establishment of a multilateral payment platform to accelerate local currency cooperation among BRICS countries.

In the view of Shahid, the decision-makers in the IMF and the World Bank are mostly from developed countries. They cannot hear the voices and needs of emerging markets. Because of this, the demands for loans, investments, and other financial needs of developing countries are not met. He took certain African countries' experiences as an example to show the massive need for changing the current situation.

"People from developing countries need an alternative system that can meet their needs to invest in their infrastructure. And the BRICS can now be the prime enabler," Shahid noted. "They are coming with their own national development bank, and we see their global payment system. They are fulfilling the aspirations and needs of their member states."

UAE-China relations speak for the trend of multilateralism

This year marks the 40th anniversary of the establishment of diplomatic relations between China and the UAE. As Shahid mentioned, China and the UAE share a unique relationship. Both nations have expressed intentions to enhance cooperation in various fields, including the Belt and Road Initiative, industry and technology, and tourism.

Data reveals that, in August 2024, China's exports to the UAE were 5.21 billion dollars, while imports were 3.21 billion dollars. This trade sum indicates a robust economic partnership, with China being the UAE's largest trading partner for non-oil trade activities, and the UAE being China's largest export market and second-largest trading partner in the Middle East.

Besides, the UAE and China are also working together in the financial sector, with the UAE Central Bank renewing its currency swap agreement with the People's Bank of China, facilitating greater financial cooperation and supporting bilateral trade and investment.

"At the government level, both countries are doing everything they can to bring people together. But when it comes to people-to-people interaction, I think we need to do more," said Shahid.

The success of the BRICS is enshrined in diplomacy, not politics

The 16th BRICS Summit covers several pressing issues, including world peace and stability and the fight against terrorism and transnational crimes. Building a BRICS committed to peace is one of the visions put forward during the summit.

Shahid emphasizes in the interview that BRICS members are not aiming to become global powers or dictate the rules. Instead, they are calling for global peace for everyone. For example, to gather more voices advocating for peace, China and Brazil, in collaboration with other countries from the Global South, initiated a group of Friends for Peace to address the Ukraine crisis. While the humanitarian situation in Gaza continues to deteriorate, BRICS calls for promoting an immediate ceasefire and an end to the killing.

According to Shahid, solving problems through diplomacy reflects the maturity of a country. With China facilitatingSaudi Arabia-Iran agreement to restore diplomatic relations, BRICS has proved its diplomatic capabilities to the whole world. "We believe the success of BRICS lies in diplomacy, not politics. The solution to the current problem is to come to the table and negotiate. And BRICS has that advantage," said Shahid.

Video & Poster Script | Jersey

Text | Liz

Video | Leo Guo

Editor | Steven, Will, James

Poster | Jocelyn Cai


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