Saudi Arabia in talks to join China-based ‘Brics bank’

Saudi Arabia in talks to join China-based ‘Brics bank’

The New Development Bank, the Shanghai-based lender better known as the “Brics bank”, is in talks with Saudi Arabia on admitting the country as its ninth member, a move that would strengthen its funding options as founding shareholder Russia struggles under the impact of sanctions.

The addition of the kingdom would reinforce ties between the bank, which was established by the world’s biggest developing economies as an alternative to western-led Bretton Woods institutions, and the world’s second-largest oil producer.

“In the Middle East, we attach great importance to the Kingdom of Saudi Arabia and are currently engaged in a qualified dialogue with them,” the New Development Bank told the Financial Times in a statement.

The talks with Saudi Arabia come as the NDB prepares to embark on a formal evaluation of its funding options, which were thrown into question by Russia’s invasion of Ukraine. The bank holds its annual meeting on Tuesday and Wednesday.

Membership would strengthen Riyadh’s bonds with the Brics countries at a time when Saudi Arabia, the world’s largest crude oil exporter, is also pursuing closer relations with China. Chinese president Xi Jinping hailed a “new era” in the countries’ ties when he visited the kingdom late last year, and Beijing