The UAE to Join BRIKS in 2024

And now to news on the economic front. One of the most exciting things of the last decades that might have a potentially massive effect on the economy of The UAE is its alliance with BRICS countries. Just this year The UAE, along with Argentina, Saudi Arabia, Iran, Ethiopia, and Egypt, was officially invited to join the bloc. Without any doubt, this will affect UAE’s real estate market since it comprises a lion's share of UAE’s economy. And if it’s going to influence the real estate market, there’s no chance we miss a chance to cover this topic for your utmost convenience. Let’s dive in and make the most use of this breaking news. 

BRICS

The BRICS concept, which comprises Brazil, Russia, India, China, and South Africa, has gained global attention for its important role in the world's economy. With its dynamic economy, the United Arab Emirates is an emerging candidate for membership in the BRICS. We'll look at the implications of the UAE's intention to become part of BRICS and discuss ways in which this can boost its real estate market.

The BRICS countries are a powerful coalition of emerging economies that were founded in 2006. The main objectives are economic cooperation, political influence, and the pursuit of a multipolar world order. The BRICS countries collectively represent a major part of the world economy, and their influence on international politics is considerable.

The interest of the United Arab Emirates in joining BRICS is based on a number of compelling reasons. In particular, this country is endowed with a strong economy and strategic geographic position that makes it an excellent partner for BRICS countries. The United Arab Emirates is also committed to the common interests of BRICS countries in promoting trade, investment, and infrastructure development.

Effect on The UAE’s Real Estate Market 

The participation of BRICS countries in the United Arab Emirates real estate market could stimulate increased foreign investment. In the past, BRICS nations have sought diversification opportunities and increased returns by investing in property around the world. In the case of Dubai's real estate market, for example, Chinese investors played a key role and contributed to its growth. The entry into BRICS provides a path to improved trade in the area of property-related goods and services.

There is a well-established real estate ecosystem in the United Arab Emirates. These sectors, especially in developing countries, can significantly benefit from cooperation with the BRICS nations. The UAE has an ambition to diversify its economy, which is in line with the BRICS objectives. Fostering economic diversification by decreasing reliance on oil revenues can be encouraged through the utilization of BRICS partnerships in the land sector. In addition, in the area of real estate development, there is a growing emphasis on sustainability. Due to that, the experience of BRICS countries in green initiatives and sustainable construction practices may come in handy. They can share their knowledge with The UAE in order to streamline the green initiatives.

Challenges and Opportunities

The potential benefits of BRICS membership are important, but the UAE has to address possible problems as well. Cultural differences, legal harmonization, and geopolitical considerations are some of the factors involved. The United Arab Emirates should strengthen its bilateral relations with the BRICS countries in order to cope with these challenges. Joining economic alliances, such as BRICS, has led to benefits for several countries. Upon becoming part of the BRICS+ initiative, South Korea experienced increased trade and investment.

The real estate market in the United Arab Emirates is highly promising because of its ambition to become a member of BRICS. The main factors that could contribute to the improving performance of this sector are greater investments, enhanced trade relations, economic diversification, and sustainability. While there are challenges ahead, strategic planning and cooperation can overcome those obstacles to create a prosperous future.

The prospects of the U.A.E.'s real estate sector in BRICS are positive. The United Arab Emirates will be able to use its large resources, knowledge and markets if it deepens relations with the BRICS countries. This partnership could also help to enhance the economy and stability of the UAE in a number of ways, not least by boosting the real estate market.

How Else Can Brics Influence UAE’s Real Estate Market?

As mentioned above, the UAE’s potential inclusion in the BRICS organization might have a number of effects on the UAE’s real estate market if done right. It may boost tourism, for example, by opening borders and creating a visa-free regime. It can also increase trade by simplifying the whole process, eliminating bureaucracy and reducing tax load and quotas. Finally, by joining the countries, most of which are rich with their natural reserves, it can help the UAE to regulate world prices and become an even more important player on the global market. The future belongs to unions and for a relatively small country such as the UAE it is important to have reliable friends on the world arena.

Overview

We do not yet know what the next year will bring. It is not yet decided whether the UAE will join BRICS or not. We have covered some of the main aspects of this potential deal. And it won’t come as a surprise that most of them are positive and optimistic. Very lucrative benefits include more investment opportunities, advantages in relation to tourism, oil and gas production, increased political weight, etc. The pros go well beyond real estate. However, as it is one of the most important markets in the UAE, it will be affected the most. Even now foreign investments in the UAE from the BRICS countries are significant and not to be disregarded. Tightening relations with countries such as China and Brazil will put The United Arab Emirates on a whole new level. T.H.E. Capital can help you get in the game so that you might enjoy the potential benefits. Connect with us to find out about the best investment opportunities.