The BRICS group was established in 2006 by Brazil, Russia, India, and China, with South Africa joining in 2011. On 1 January 2024, Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia joined the group. In the same year, Russia hosted the
Kazan Summit, where these countries participated as full members for the first time. One of the main topics was the creation of a new BRICS investment platform using modern electronic tools.

The Role of the NDB In Financing BRICS Projects

The BRICS New Development Bank (NDB) is central to BRICS’s approach to financing development projects. As stated by the NDB official website, with substantial capital initially set by the core BRICS members (Brazil, Russia, India, China, and South Africa), the bank has been expanding its reach by funding projects not only in the founding nations but also in newly affiliated BRICS+ countries.

The NDB’s primary mandate is to mobilise resources for infrastructure and sustainable development projects within the BRICS nations and other developing countries.

With its headquarters in Shanghai, the NDB has been instrumental in aligning its financing strategies with the Sustainable Development Goals (SDGs) and has prioritised projects that facilitate green growth, digital connectivity, and social infrastructure.

According to the NDB official website, the bank has committed to directing at least 40 per cent of its funding to climate adaptation and mitigation, aligning with the Paris Agreement’s objectives to tackle climate change. In 2023 alone, the NDB contributed significantly to climate finance efforts, supporting projects that reinforce resilience and sustain economic growth across its member states.

Mikhail Khachaturyan, Associate Professor of the Department of Strategic and Innovative Development of the Financial University under the Government of the Russian Federation, in an exclusive commentary for TV BRICS, highlighted that the New Development Bank in the context of the BRICS expansion is becoming a key element of the mechanism of investment cooperation between the member countries.

According to the expert, the bank is a kind of financial hub for supporting investment projects and building a mechanism of mutual settlements.

To date, the NDB has funded over US$30 billion in projects, ranging from roadways to green energy ventures. Recently, in preparation for 2024, the NDB outlined initiatives that include collaboration on renewable energy projects, improved digital financial systems, and transportation networks.

“Among the most successful projects financed by the BRICS New Development Bank are two projects in India in the field of road infrastructure in the states of Gujarat and Bihar. Among the Russian projects supported by the NDB, it is worth mentioning a sovereign loan for a project in the field of informatisation and digitalisation of the judicial system, as well as a sovereign loan for integrated development of the 9 small historical settlements’ territory and infrastructure (Torzhok, Chistopol, Vyborg, Gorokhovets, Rostov Veliky, Suzdal, Staraya Russa, Arzamas, Tutaev),” Mikhail Khachaturyan commented.

Additionally, Russia and China are in discussions to assist other BRICS nations in developing chip-manufacturing capabilities in response to Western export restrictions, which is expected to boost technology and local innovation efforts.

Key sectors of BRICS investment opportunities

In 2024, the UAE capital hosted the Annual Investment Congress (AIM), which featured 412 dialogue sessions offering a comprehensive exploration of investment trends and opportunities.

During the event, Dawood Al Shezawi, President of AIM Global Foundation, in an exclusive commentary to TV BRICS, said that new markets have opened up for countries in the Arab world. 

“I think within BRICS, there are already three states in the Arab world with the largest economies (Saudi Arabia, UAE, and Egypt). They account for 66 per cent of Arab GDP. The BRICS markets, such as Brazil, Russia, China, and South Africa, open up new opportunities for the members of the group and investors,” stated Dawood Al Shezawi.

Mikhail Khachaturyan noted that the most promising sectors for foreign investors in the BRICS countries are IT, agriculture, automotive, mechanical engineering, fuel and energy, the financial and banking sector, services, construction, and trade.

“It is obvious that as the integration processes of the BRICS countries deepen, the list of industries of mutual investment interest will grow,” he said.

According to the Road Map for BRICS Energy Cooperation up to 2025, published on the official website of the 2021 BRICS Chairmanship, the key sectors for BRICS investment opportunities are as follows:

Energy and Infrastructure

The energy sector remains one of the main investment targets within BRICS due to each country’s unique strengths and needs. Russia and Saudi Arabia, for instance, are major oil producers within BRICS, while China’s Belt and Road Initiative continues to drive infrastructure investment across Asia and Africa. These projects allow BRICS countries to build more integrated energy networks, which reduces energy costs and strengthens trade partnerships, particularly in rapidly industrialising areas of Africa.

Technology and Digital Infrastructure

As part of the group’s commitment to economic self-reliance, BRICS countries are making investments in digital infrastructure, cybersecurity, and technology education. China and Russia have spearheaded initiatives to develop 5G networks, with India and Brazil keen on adopting similar models. The NDB has also pledged support for projects that enhance connectivity across rural and urban regions, fostering greater digital equity within member states.

Financial and Banking Systems

BRICS is also investing in developing financial frameworks that allow for local currency transactions, reducing dependency on the dollar. This financial autonomy supports not only trade among BRICS nations but also helps stabilise national currencies. The BRICS countries have also been considering ways to establish a reliable system for mutual settlements, with the possibility of creating a common BRICS currency also being discussed.

Mikhail Khachaturyan noted that the expansion of the number of BRICS member countries through the accession of Ethiopia, Egypt, Iran, Saudi Arabia, and the UAE to the group obviously significantly expands the investment opportunities of BRICS, and Saudi Arabia, the UAE, and Egypt can play a very significant role in this aspect.

The expert claimed that, on the other hand, the production opportunities in the industrial, oil and gas, and transport sectors, in which Iran, the UAE, Egypt, and Saudi Arabia are serious players, as well as in agriculture, where Egypt and Ethiopia have great opportunities and potential, are increasing very significantly. These aspects create significant opportunities both for mutual direct investment by member countries and for the implementation of projects through the BRICS New Development Bank.

President of Russia Vladimir Putin, during the expanded meeting of the BRICS Summit, highlighted the areas of investors’ interests in which the BRICS countries continue to lead.

“Several BRICS countries are among the world’s largest producers of grains, leguminous crops, and oilseeds. In this regard, we proposed establishing a BRICS Grain Exchange, which would help discover fair and predictable prices for products and raw materials, since the latter have a special role to play in ensuring food security,” he stated, according to the official website of the Russian President.

Recent BRICS Meetings on Investment and Development

In a recent 2024 BRICS Summit held in Kazan, Russia, representatives from all BRICS+ countries discussed plans to deepen economic integration, particularly through increased investment in energy and infrastructure.

Russian President Vladimir Putin emphasised the need for further cooperation in establishing financial systems that empower the BRICS countries to secure financing for large-scale projects.

Russian President suggested that to fully realise the potential of growing economies and take advantage of the new wave of global economic growth, the BRICS countries need to strengthen cooperation in areas such as technology, education, efficient resource development, trade and logistics, finance, and insurance. Additionally, they must significantly increase the scale of investments.

According to the outcomes of the Summit, for investors, the collaborative investment projects in energy and digital infrastructure across BRICS countries represent lucrative opportunities. With initiatives such as the NDB’s lending programmes and the expansion of the Belt and Road Initiative, BRICS nations are crafting a cooperative economic model that aims to reduce external dependencies and promote sustainable, shared growth among members.

Addressing the issue of ongoing investment projects, Mikhail Khachaturyan noted that the most significant joint initiatives include investments in agricultural and land reclamation projects in Brazil, as well as the implementation of transport infrastructure development projects within the framework of the Belt and Road Initiative and North-South Transport Corridor projects.

“The most significant BRICS investment projects, agreements on the implementation of which were concluded following the BRICS summit in Kazan, are: the development of payment systems project implemented by Russian developers, which can later be used within the group; development of oil services with the subsequent introduction of a joint company to the stock market; the project in the production of electric car components; the project in the development of data centres for energy-intensive industries; and the data centres development project for energy-intensive industries”

Mikhail Khachaturyan Associate Professor of the Financial University under the Government of the Russian Federation

In October 2024, the Russian Direct Investment Fund proposed establishing a BRICS investment platform as part of Russia’s BRICS Chairmanship. The platform will make it possible to expand mutual investment between BRICS countries several times over, as reported by the official website of the Russian President.

“We suggest establishing a new BRICS investment platform that would become a powerful tool for supporting our national economies and provide countries of the Global South and East with financial resources”

Vladimir Putin President of Russia

The fund’s representatives also suggested setting up an AI alliance to ensure leading positions of BRICS states in this sphere. Key participants in the BRICS Business Council have already supported these initiatives.

In addition, the group launched the BRICS Pay initiative, as reported by the official website of BRICS Pay. This financial instrument is a planned decentralised and independent payment messaging mechanism system for BRICS nations to trade with each other through their own currencies.

Participants in the system can connect to different banks. There can be several such banks in each country. In addition, within the realised BRICS Pay topology, participating banks can establish direct relations with other foreign banks or other financial institutions, and potentially symtem will contribute to reducing BRICS countries’ cross-border payment costs.

As the group continues to grow, currently being joined by partner countries, investment opportunities across diverse fields like energy, technology, and finance are set to expand further.

Currently, the BRICS group is also discussing future projects, such as creating a permanent logistics platform within BRICS, reviewing transport routes, creating an online communications platform for the transport sector, and establishing a reinsurance pool. This was stated by the Russian president during the expanded meeting of the BRICS Summit.

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