9 New Markets that SBN Forum 2024 will Open to your BRICS Business

In this article, we’ll break down the research on each major player within the BRICS economies to provide you with all the information you need to successfully do business abroad.

Foreword

It’s no secret that the SBN conference will offer you insights into nine up-and-coming global markets. But how well do you know each of them?

The BRICS economies encompass a diverse array of nations spanning multiple continents, each presenting unique opportunities and challenges for businesses seeking growth and expansion. Among these nations, Brazil, Russia, India, China, and South Africa have emerged as key players in the global economic landscape. Additionally, markets like Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE) offer promising prospects for investment and development.

In this article, we’ll break down the research on each major player within the BRICS economies to provide you with all the information you need in anticipation of the SBN Forum 2024.

Brazil

Starting with the largest and most important market on the South American continent, let’s discuss Brazil.

Following a period of economic challenges, including declining commodity prices and political instability, Brazil achieved a notable economic rebound, with real GDP growth hitting 5.0% in 2021 and 2.9% in 2022.

The resurgence of consumer confidence, fueled by a strong labour market, controlled inflation, and real income growth, has led to a surge in retail sales, signalling a vibrant domestic market.

Moreover, Brazil's talent pool is particularly appealing for businesses focusing on innovation and technology. The country is recognized for its highly skilled developers and ranks prominently in the global innovation economy. Tax incentives for technological innovation further enhance its attractiveness as a destination for software development outsourcing. Additionally, Brazil's IT sector has seen substantial improvements, boasting robust IT infrastructure and a dedicated workforce that ensures project timelines are met efficiently. These factors collectively contribute to Brazil's potential as an emerging market in 2024, attracting investors and businesses looking for growth opportunities and a favourable business environment.

These factors collectively contribute to Brazil's potential as an emerging market in 2024, attracting investors and businesses looking for growth opportunities and a favourable business environment.

Russia

Moving north, the ‘big bear’ is poised to see an uptick in oil production and exports, leveraging its vast natural resources to offer lucrative opportunities in the energy sector. This is complemented by a robust economic framework supported by significant fiscal stimulus, strong investment, and resilient consumption amidst a tight labour market.

Notably, the exodus of Western investors has opened up a vast number of opportunities for BRICS contenders.

The electric vehicle (EV) market in Russia is on the brink of substantial growth, spurred by government investment initiatives and an increasing sector presence. This growth trajectory is further bolstered by the household goods retail sector, where sanctions have curtailed foreign direct investment, paving the way for domestic brands to flourish and capture market share.

Despite the headwinds of Western sanctions and geopolitical tensions, Russia's economy shows resilience and is projected to grow by 1.1% in 2024. This growth is not confined to traditional sectors but extends to technology and infrastructure, presenting a broad spectrum of investment opportunities.

India

India is on a robust economic growth path, with projections estimating expansion rates between 6.9% and 7.2% for the fiscal years 2023 to 2024, followed by a still impressive 6.4% to 6.7% in the subsequent year. This trajectory underpins the vibrancy of India's economic landscape and its potential for sustained growth.

Notably, India's earnings growth is anticipated to surge by 17% in 2024, a testament to the country's solid financial fundamentals and a positive signal for investors about the health of its corporate sector. This growth is expected to support the current price-to-earnings ratio, presenting an optimistic outlook for the investment community.

Infrastructure development is a central pillar of India's growth strategy, with the government earmarkingsignificant investments for comprehensive projects. These include the construction of new railway corridors, port modernization efforts, and ambitious green energy initiatives, all of which open up vast avenues for growth and foreign investment.

The depth of India's market and its burgeoning consumer economy are equally significant. With a stock market surpassing the combined size of Korea's and Taiwan's and characterised by increasing trading volumes, India presents a dynamic investment landscape. This is further buoyed by a rising per-capita GDP and the expansion of the middle class, which together fuel consumer spending and economic vitality.

Furthermore, India's proactive engagement in global collaborations, notably with the United Arab Emirates (UAE) and the European Free Trade Association (EFTA), underscores its openness and commitment to fostering international investment cooperation. These partnerships enhance India's global economic footprint and present diverse opportunities across various sectors.

These collective attributes underscore India's standout position as a promising market in 2024, laying a fertile ground for investors looking for dynamic, long-term growth opportunities across the economic spectrum.

China

In 2024, China cements its status as a premier destination for business expansion, buoyed by a confluence of factors that underscore its market attractiveness.

A hallmark of China's appeal is its consistent growth and stability, a trend sustained over four decades. This enduring economic resilience, particularly evident in its swift recovery from the COVID-19 pandemic, positions China as a bastion of reliability amidst global economic fluctuations. The country's economy showcases significant GDP growth rates, setting it apart from its global counterparts.

A critical asset in China's value proposition to businesses is its skilled workforce, which boasts specialist manufacturing expertise. This talent pool makes China an unparalleled location for companies in need of adept and efficient labour. Complementing this is China's competitive corporate tax environment, with a rate hovering around 25%, lower than many other nations, including the UK, India, Mexico, or Brazil. This favourable tax regime enhances China's allure for businesses aiming to optimise their financial performance.

China's market size and e-commerce landscape offer unparalleled opportunities for businesses targeting international expansion and deeper market penetration. As home to the world's largest e-commerce market, China's digital commerce ecosystem is primed for substantial growth, promising significant returns for companies venturing into this space.

Moreover, China's infrastructure, notably its world-class seaports, streamlines the export process, enabling efficient access to global markets. This logistical advantage is pivotal for businesses looking to distribute products internationally with ease. Additionally, the preference of Chinese consumers for high-quality, competitively priced local products opens avenues for businesses to integrate with domestic manufacturers and develop localised supply chains, catering directly to market demands.

Collectively, these factors solidify China's position as an exceptionally lucrative market for business in 2024. With its combination of growth potential, market stability, skilled labour, and favourable business conditions, China offers a conducive environment for companies seeking to expand and thrive on a global scale.

South Africa

In 2024, South Africa stands out as a pivotal market for businesses aiming for investment and innovation.

The country is at the forefront of embracing technology trends, with Gartner's top strategic predictions offering a roadmap for businesses to enhance their competitiveness and sustainability. This involves the integration of cutting-edge technologies, positioning South African enterprises at the vanguard of innovation.

The widespread adoption of industry cloud platforms (ICPs) is set to transform the business landscape, with projections indicating that over 70% of enterprises will utilise these platforms by 2027. This shift offers South African businesses unparalleled opportunities to fast-track their initiatives, tap into industry-specific capabilities, and drive economic growth with solutions tailored to their unique needs.

Furthermore, the deployment of intelligent applications, underpinned by artificial intelligence (AI), is poised to revolutionise workforce development. By harnessing these technologies, businesses can elevate the skills of their talent pool, improve workforce well-being, and achieve significant business outcomes that contribute to broader economic prosperity.

In the realm of cybersecurity, the emphasis on continuous threat exposure management (CTEM) aligns with South Africa's strategic initiatives to bolster its cyber defences. This proactive approach to risk evaluation and mitigation is crucial for safeguarding digital assets against the backdrop of escalating cyber threats.

Gartner's forecast that 25% of Chief Information Officers' (CIOs) personal compensation will be linked to sustainable technology impact by 2027 underscores the growing significance of sustainability in the technological domain. This trend highlights the critical role of sustainable practices in shaping the business strategies of South African enterprises.

Collectively, these elements spotlight South Africa's significance as a dynamic and important market in 2024. The country offers a fertile ground for growth, innovation, and sustainability, making it a key player in the global technological landscape and an attractive destination for forward-thinking businesses.

Egypt

As one of the fastest-growing tech markets in the Middle East, Egypt's information technology industry is poised for substantial growth, with projections indicating a reach of $10.5 billion. This rapid expansion positions Egypt as a leading destination for tech companies seeking to tap into the burgeoning Middle Eastern market.

Further enhancing Egypt's attractiveness for business ventures is its ranking as the 14th most appealing emerging market for foreign investments globally. This notable placement, ahead of countries such as Turkey, Morocco, South Africa, and Russia, reflects Egypt's strategic initiatives and favourable economic policies aimed at attracting foreign capital.

The commercial real estate sector in Egypt is another area witnessing remarkable growth. Driven by rapid urbanisation, foreign direct investment, and targeted government initiatives, the sector's expansion signals a robust demand for commercial properties and underscores the country's economic momentum.

Egypt's commitment to economic reform is further underscored by its broad privatisation program, which aims to offer state-owned enterprises to strategic investors. This initiative not only signifies Egypt's openness to foreign investment but also presents lucrative opportunities for businesses looking to invest in a market on the cusp of transformation.

Infrastructure development is a cornerstone of Egypt's growth strategy, exemplified by the construction of a new administrative capital near Cairo and significant investments in various infrastructure projects. These endeavours illustrate Egypt's dedication to modernization and development, creating a fertile landscape for businesses across industries.

Collectively, these elements underline Egypt's potential as a burgeoning market in 2024, offering a wealth of growth opportunities, investment prospects, and a supportive environment for businesses aiming to flourish in the dynamic Egyptian economy.

Ethiopia

The cornerstone of Ethiopia's economic ascent has been its state-driven infrastructure development program, which has yielded industrial parks and infrastructural advancements comparable to those of more affluent nations.

This ambitious initiative reflects the country's commitment to fostering a conducive environment for industrial and commercial activities.

The Ethiopian government has undertaken significant reforms aimed at enhancing the business climate and attracting foreign investment. Through the implementation of its Homegrown Economic Plan and a comprehensive revamp of its Investment Law, Ethiopia has opened up previously restricted sectors to non-Ethiopian investors. These reforms signal a pivotal shift in the country's economic policy, offering a more open and competitive market landscape.

Under the leadership of Prime Minister Abiy Ahmed, Ethiopia has witnessed a remarkable economic transformation, pivoting from a predominantly state-driven economic model to embracing more market-oriented reforms. This transition has facilitated the opening of key sectors such as telecommunications, energy, railway, logistics, and sugar to both domestic and foreign investment, heralding a new era of economic liberalisation and diversity.

The government's strategic move towards liberalising its market economy, particularly through the privatisation of sectors formerly under state control, presents vast opportunities for the private sector's growth and for foreign investment. This liberalisation is a testament to Ethiopia's evolving economic landscape, offering promising prospects for businesses looking to invest in a dynamic and reforming market.

Despite facing challenges such as high levels of foreign debt and shortages in foreign exchange, Ethiopia's economic growth trajectory remains robust. The country's resilience and strategic reforms make it an attractive market for investors and businesses aiming to capitalise on the opportunities within a rapidly developing economy.

Collectively, these factors position Ethiopia as a vibrant market in 2024, ripe with opportunities for investment, development, and economic participation. The country's commitment to infrastructural development, economic reforms, market liberalisation, and the transformation of key sectors paves the way for a promising future for businesses looking to engage in the Ethiopian market.

Iran

As Iran positions itself for economic resurgence, the nation's economy is anticipated to witness a growth of 3.5% in 2024. This growth is largely attributed to a revival in its oil production and exports, coupled with a surge in government expenditure. Such an economic upturn places Iran as a compelling arena for tech companies and investors aiming to penetrate the Middle Eastern market.

Adding to Iran's allure is its projected Average Annual Growth Rate (AAGR) of over 3% from 2024 to 2027, especially within pivotal sectors such as oil and gas, transportation, and housing. This forecast not only highlights the investment potential within Iran but also showcases the diverse opportunities across its economic landscape.

The forecast for consumer spending in Iran also looks promising, with an expected increase of 2.8% in 2024. This uptick is supported by improving employment conditions and a decline in inflation, signalling a strengthening of the consumer market which could entice businesses and investors looking for a robust spending environment.

Iran’s strategic geographic positioning considering major international trade routes further enhances its investment appeal. Serving as a gateway for countries like Russia, China, and various Arab nations, Iran offers unparalleled access to new business opportunities, facilitating trade and investment flows.

In summary, Iran's economic landscape in 2024 is set to offer a dynamic mix of growth, investment opportunities, and strategic advantages. With its economy on the rise, favourable sectoral growth rates, and a pivotal geographical location, Iran represents a fertile ground for businesses and investors looking to tap into the Middle Eastern market's potential.

The United Arab Emirates

At last, we arrive at the home of the SBN forum 2024. The UAE economy is experiencing its fastest growth rate in over a decade. GDP increased by 7.6 per cent in 2022 despite the global economic slowdown, as shown in a 2023 report. This year, it is a stand-out market among the BRICS economies that we have studied thus far.

Anchored by its geographical prowess, the UAE sits at the nexus of critical trade routes, connecting East and West, which amplifies its role as a pivotal hub for international commerce. This strategic positioning not only attracts a multitude of global investments but also facilitates dynamic economic partnerships, propelling the nation's ambitious growth trajectory.

Following the success of ‘UAE Vision 2021’, the UAE has launched "We the UAE 2031" vision which includes new national strategies like the Projects of the 50 and the UAE Centennial 2071 plan, aiming for long-term government, economic, and social development.

Contributing to its vibrant economy, the UAE offers a wealth of job opportunities across a spectrum of sectors, welcoming both local and international talent. This inclusive approach to workforce development is pivotal in driving the nation's economic expansion, nurturing a culture of determination, and paving the way for rewarding career paths.

Small and medium-sized enterprises (SMEs) find a fertile ground in the UAE, thanks to a supportive ecosystem that champions entrepreneurial ventures. With a myriad of roles in corporate sales, marketing, and business development readily available, the UAE underscores its commitment to nurturing innovation and entrepreneurship, essential pillars for sustainable economic advancement.

Ultimately, Dubai's booming economy, flourishing infrastructure, and supportive ecosystem for startups make it an attractive market for BRICS businesses.

Wrapping up

The SBN Forum 2024 promises unparalleled insights into nine dynamic global markets, each offering unique opportunities for growth and expansion. From the established powerhouses of the BRICS economies to the emerging markets of Egypt, Ethiopia, Saudi Arabia, and the UAE, there's a wealth of potential waiting to be explored.

To fully capitalise on these opportunities, secure your tickets for the SBN Forum taking place from the 2nd to the 4th of May 2024.

Join us as we delve deeper into these markets, providing you with the knowledge and strategies needed to thrive in today's rapidly evolving business landscape. Don't miss out on this chance to connect with industry leaders, gain valuable insights, and take your business to new heights.