Algeria has received approval to join the BRICS New Development Bank (NDB), as announced by the country’s Finance Ministry. The decision was made public by NDB President Dilma Rousseff during a meeting in Cape Town, South Africa.
Advancing global financial integration
By becoming a part of “this significant development institution, the financial branch of the BRICS group,” Algeria is making a significant advance in its integration into the global financial landscape, according to the statement from the Finance Ministry. The BRICS bank, named after its founding members—Brazil, Russia, India, China, and South Africa—aims to provide an alternative to traditional international financial institutions such as the World Bank and the International Monetary Fund (IMF).
Economic strength, growth opportunities
Algeria’s membership was made possible due to “the strength of the country’s macroeconomic indicators,” which have shown “remarkable improvements in recent years,” allowing Algeria to be classified as an “upper-tier emerging economy,” the Finance Ministry noted. This membership is expected to provide Algeria—Africa’s top natural gas exporter—with “new opportunities to bolster and enhance its economic growth in the medium and long term.”
Role of the New Development Bank
Founded in 2015, the main objective of the NDB is to gather resources for initiatives in emerging markets and developing countries. The bank has recently welcomed several new members, including Egypt, the UAE, and Iran. Saudi Arabia was also invited to join but later withdrew its application due to a change in leadership in November, although it continues to consider membership.
Read more: Davos 2024: Minister says Saudi Arabia not yet a BRICS member
Confidence in Saudi Arabia’s commitment
Furthermore, on January 19, Russian news agency TASS expressed confidence in Saudi Arabia’s commitment to BRICS amid ongoing speculation. The Kremlin, according to Presidential Spokesman Dmitry Peskov, has no reason to doubt Riyadh’s interest in joining the organization. Peskov remarked, “We believe that Saudi Arabia is guided by BRICS membership,” adding that there is no additional information available at this time. He also highlighted that Moscow remains in discussion with Riyadh, mentioning that the topic was addressed during President Putin’s recent visit to the Kingdom.
Future prospects for sustainable development
The New Development Bank was established in 2015 by the BRICS coalition to mobilize resources for sustainable development projects in emerging markets and developing countries.
Upcoming BRICS Summit in Kazan
The upcoming BRICS summit is set to be held in Kazan, the capital of Tatarstan in Russia, in October, where Algeria is expected to have a strong presence.
Aligning with global economic coalition
With this membership, Algeria aligns itself with the BRICS bloc, a strategic ally for leaders like Vladimir Putin and Xi Jinping. Moreover, this coalition represents 36 percent of the world’s Gross Domestic Product and welcomes Algeria as it continues its journey toward deeper integration into the global financial system.
For more economy news, click here.
