Saudi Arabia Ditches BRICS, Locks $600B Mega-Deal With US

Saudi Arabia just made a geopolitical power play—dumping the BRICS alliance to secure a game-changing $600 billion pact with Washington. The move sends shockwaves through emerging markets and redefines petrodollar dynamics overnight.

Why this stings: Riyadh’s pivot undercuts the BRICS’ de-dollarization push while giving Wall Street fresh ammo to dominate Gulf capital flows. Another win for the dollar’s death grip on global finance—just as crypto was gaining traction.

The fine print? This deal likely funnels billions into US tech and defense stocks. Meanwhile, BRICS nations scramble to plug the oil-and-gas gap left by the Saudis’ exit. Talk about timing—right as Bitcoin ETFs start eating into gold’s safe-haven status.

One cynical take: Nothing unites old-money elites faster than the smell of fresh debt issuance. The real winner? Probably BlackRock’s algo traders.

Saudi Arabia & US Reach New Deal Despite BRICS Standoff

Since his return to the Oval Office, Donald Trump has not been shy about his feelings toward the BRICS economic alliance. Earlier this year, he threatened 150% tariffs on the bloc. Specifically, he warned of repercussions for its continued de-dollarization efforts.

His stance only complicated the relationship between the collective and the recent expansion nation, Saudi Arabia. With tensions rising during Trump’s second term, Riyadh was seemingly caught in the middle. Now, it appears to have made its choice, as Saudi Arabia has turned from BRICS, signing a new strategic deal with the US in 2025

The memorandum and agreement encompassed a host of sectors, including energy, defense, health, and the arts. Additionally, the letter of intent will see the US aid Saudi Arabia in the development of its armed forces. Moreover, they have plans for the Saudi Ministry of Interior and FBU to cooperate in one of many partnership aspects.

Director of Research at Riyadh’s Observe Research Foundation Middle East, Abdulaziz Alghashian, recently discussed the agreement. He noted that the deal’s reach “speaks to the depth” of the two nations relationship. With the US and BRICS standing so opposed, it questions Saudi Arabia’s commitment to its cause.

However, that may not be the case. Algashian noted that the deal “won’t come at the cost of relations with others.” Yet, only time will tell if that is the case. Just weeks ago, the US and China were on the doorstep of a trade war. Moreover, those tensions don’t appear to be entirely resolved.