Brics leaders facing their widest divisions yet in New Delhi this week, as UAE and Iran back peace call

All eyes turned to New Delhi this weekend for a read on whether Brics can turn its size into real global sway or whether a widening bloc just means less agreement. Leaders are meeting for the annual summit on 12-13 September with members split on key issues, though signs of diplomatic progress emerged yesterday when Iran and the UAE signed a joint BRICS statement calling for “maximum restraint” in the regional war. The statement omitted specific mention of US and Israeli strikes on Iran and Tehran’s retaliatory attacks across the Arabian Gulf.

Other issues on the table: Broad consensus remained elusive on key points like the war in Ukraine and Trump’s tariffs, except for the joint statement's stance against “unilateral coercive measures that are contrary to international law.” Even so, India — this year's chair — is pushing Brics central banks to link up their digital currencies, Reuters reports, citing sources familiar with the matter. This is the second time India has floated the idea, and Brazil has separately pushed for a unified currency to challenge USD dominance.

Why it matters for the Gulf: Brics accounts for roughly a quarter of global nominal GDP — nearer 40% on a purchasing-power basis — and about half the world's population, spread across 10 full members after last year's addition of Indonesia and 2024's intake of Iran, the UAE, Ethiopia, and Egypt. Saudi Arabia, still listed as a member on Brics' own website, has never formally confirmed it joined.

Brics’s biggest advantage might lie in the energy sector. The group simultaneously hosts some of the largest global producers. In total, they wield considerable strength, accounting for 46% of total global oil exports. Energy cooperation via coordination between firms inside member nations, rather than in a joint energy policy, would be significant, S&P Global Energy’s Gauri Jauhar told First Post.

The bloc had already coordinated on a USD 100 bn emergency reserve fund back in 2015 to help member nations avoid liquidity pressures and act as a financial safety net. Similarly, it set up the New Development Bank, tasked with financing infrastructure and development in developing nations. As of May, it had deployed USD 42.9 bn in financing and provided backing to 139 projects.

But consensus keeps breaking down: Egypt and Indonesia backed a UN resolution calling on Russia to withdraw from Ukraine, which other members abstained or voted against. Brics also condemned the US' 2025 airstrikes on Iran as a violation of international law but has issued no unified statement on the US-Israel war against Iran. Now, the UAE has severed all trade and financial ties with Iran following an escalation that had seen drones hit the UAE’s territorial waters, as well as Iranian attacks on UAE oil tankers.

Trump's tariffs split the bloc further: China responded with retaliatory levies, while others pledged fresh investment in the US to stay in Washington's good graces. Trump himself has dismissed Brics as fading fast and threatened extra tariffs on any country that leans into de-dollarization.

THE CLOSING BELL-

The EGX30 fell 0.4% at Thursday’s close on turnover of EGP 12.1 bn (4% above the 90-day average). Local investors were the sole net buyers. The index is up 34.6% YTD.

In the green: Orascom Development (+3.5%), Emaar Misr (+2.1%), and Egypt Aluminum (+2.0%).

In the red: AMOC (-5.5%), Edita (-5.5%), and Misr Cement (-2.3%).