BRICS to build UAE-based logistics hub: Why it matters?

Building the BRICS Nodes

The BRICS Business Council is discussing a logistics platform based in the UAE, revealed Sergei Katyrin, chairman of the council’s Russia Chapter, when speaking to Russian media.

🌏The concept of establishing a logistics hub for the group was first introduced at the BRICS Kazan Summit, where the significance of enhancing cooperation was articulated in a subsequent declaration.

🌏The UAE’s strategic position at the intersection of key trade routes between the Indian, Pacific, and Atlantic Oceans, along with its infrastructure—including ports, airports, and an extensive highway network—makes it preferable for the logistics hub.

🌏Several crucial transport corridors facilitate connections among BRICS countries and enhance their mutual trade:

▪️The International North-South Transport Corridor (INSTC) spans 7,200 km, linking Russia, Iran, India, China, and Kazakhstan.

▪️The East-West transport corridor, approximately 10,000 km in length, connecting China, Russia, Kazakhstan, Azerbaijan, Armenia, and Turkey to Europe, is aligned with China’s “One Belt, One Road” initiative.

🌏According to the latest WTO data, the trade volume between BRICS nations and their global partners, as well as within the group itself, reached $10.4 trillion by the end of 2023. This figure represents 21.6% of total world trade.

🌏Russia’s trade turnover with the BRICS countries climbed 6.3% higher in the first five months of 2024 than the same period in 2023, as reported by Russia’s Minister of Industry and Trade Anton Alikhanov in August.