by Marwa Yahya
CAIRO, Aug. 25 (Xinhua) -- Egyptian analysts have expressed optimism about the potential benefits of Egypt's inclusion in the BRICS group, anticipating positive impacts on its political and economic arenas.
Egypt, along with five other countries, was invited on Thursday to join the BRICS, an acronym for an emerging-market bloc that groups Brazil, Russia, India, China, and South Africa.
"The group will help Egypt continue its moves to liberate the economy, expand markets, and increase exports," said Gamal Bayoumi, head of the Cairo-based Arab Investors Union.
With the combined population of BRICS countries making up 40 percent of the world's total and their global gross domestic product accounting for a quarter of the world's total before the expansion, many countries want to join the BRICS due to its principle of equal partnership and respect for different perspectives, Bayoumi added.
Egypt's political stability, strategic location at the meeting point of three continents, and strong economy as Africa's second-largest are the advantages recognized by the BRICS, Bayoumi noted.
In the past few years, Egypt has initiated many development projects, among them the opening of a new branch of the Suez Canal to attract more foreign currency, the construction of a new capital to ease traffic congestion in Cairo, and the expansion of its transportation networks to facilitate trade.
Egypt's membership in the BRICS will enable it to obtain soft loans from the bloc's New Development Bank instead of borrowing money at high interest from other international banks, he said.
On Friday, Egyptian Finance Minister Mohamed Maait said "Egypt's accession to the BRICS will increase its exports and investment opportunities as well as the inflows of foreign investment."
"This positive step reflects Egypt's economic and political weight in stimulating economic cooperation and enhancing trade exchange between Egypt and the bloc's member states," the minister noted.
Maait also highlighted the advantages of doing business in national currencies within the BRICS, which could reduce import costs and alleviate pressures on Egypt's public budget that has already been strained by costs on essential commodities like wheat and fuel.
However, Bayoumi acknowledged that joining the BRICS presents a challenge for Egypt, as it needs to enhance its industrial sector and increase agricultural production to meet the demands of big markets like China and India, two of the world's most populous countries.
Naser Abdel-Aal, a political science professor at Suez Canal University, regarded Egypt's inclusion, along with Saudi Arabia and the United Arab Emirates, in the BRICS as "an influential step toward a world order with a fairer distribution of resources."
He said that adding more countries to the BRICS would promote global development and achieve welfare for all nations, stressing that the BRICS is an international partnership that seeks to create a mutually beneficial order catering to each member state's unique attributes, particularly the developing countries.
"The Middle East countries invited to join the BRICS, which include Egypt, is the world's balance scale. Their energy reserves qualify them to make important decisions that add to the political significance of the BRICS," Abdel-Aaal noted.
Adding three Arab countries to the BRICS can counter hegemonic policies imposed onto the region, Abdel-Aal added.
The 15th BRICS Summit announced on Thursday that six countries, including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates, have been invited to join the group, and their membership will take effect on Jan. 1, 2024. ■