Egypt’s accession to BRICS will strengthen the country’s economic position, which will create additional conditions for sustainable growth, macroeconomic and financial stability. This is reported by Mamedov Tural Natig ogly, PhD in Economics, leading researcher at the Institute for the Study of International Economic Relations of the Financial University under the Government of the Russian Federation.

The Egyptian economy is characterised by a high level of external public debt. According to statistics, Egypt’s debt burden currently stands at 82 per cent of gross domestic product (GDP), which is one of the highest in North Africa. For example, the average level in developing economies is 60 per cent of GDP.

In this regard, for Egypt, joining the BRICS is an opportunity to attract long-term investment in the national economy and, as a result, reduce the fiscal burden on the budget. This is due to the fact that BRICS is an interstate association that has a huge investment potential. At the same time, the experience of China and India in attracting foreign investment can bring Egypt good results in terms of investment projects.

Of particular importance for Egypt is the creation of new forms of economic cooperation, access to financial resources of the BRICS New Development Bank (NDB), and the implementation of joint innovation and infrastructure projects with China, India and Russia.

Prospects for co-operation between Egypt and the rest of the BRICS countries

Egypt’s increased co-operation with the BRICS countries in trade and investment will also increase the use of national currencies in mutual settlements. At the same time, the attractiveness of using national currencies will be enhanced by stimulating mutual trade between partner countries. Moreover, the similarity between Egypt’s national economic interests and those of the BRICS countries may stimulate the development of payment system technologies in the future.

Overall, joining BRICS will allow Egypt and other interested countries to reap the following benefits:

strengthening the exchange rate of national currencies in international settlements;
increasing the level of interaction between financial and credit institutions of the partner countries;

gaining access to new technologies within the BRICS framework;

formation of a single digital currency;

modernisation of production sectors and job creation;

increased mutual trade and investment.

Significance of Egypt’s accession to BRICS for the Middle East and Africa region

Given Egypt’s favourable geographical location, there is a high potential for the BRICS countries to develop trade and economic cooperation with other countries on the African continent. First of all, Egypt can become a window for the BRICS countries to the Middle East and North Africa.

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