Brics leaders meet in New Delhi this week facing their widest divisions yet, even as India pushes for shared digital currencies

All eyes turn 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 meet for the annual summit on 12-13 September with members split on the Middle East, Ukraine, and how to handle Trump's tariffs. Even so, India — this year's chair — is pushing Brics central banks to link up their digital currencies, sources told Reuters. It's the second time India has floated the idea; 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.

MARKETS THIS MORNING-

Asian markets are a sea of red amid a global selloff as oil prices jumped overnight on the back of regional escalation by the Houthis in Saudi Arabia, with South Korea’s Kospi leading declines, down 2.8%, and Japan’s Nikkei close behind at -2.6%. Hong Kong’s Hang Seng Index was down 1.4%, while the mainland’s CSI 300 lost 0.9%.

THE CLOSING BELL-

The ADX rose 0.1% yesterday on turnover of AED 1.2 bn. The index is up 1.2% YTD.

In the green: Apex Investment (+5.1%), NMDC Group (+4.1%), and Waha Capital Company (+4.0%).

In the red: Sharjah Cement and Industrial Development Co. (-4.7%), Abu Dhabi National Co. for Building Materials (-3.7%), and Americana Restaurants International (-2.8%).

Over on the DFM, the index fell 0.4% on turnover of AED 420.9 mn. Meanwhile, Nasdaq Dubai was up 0.2%.