BRICS+ Series: Gulf Capital Powers BRICS+ Future
UAE President Sheikh Mohamed bin Zayed al-Nahyan (rear L) and French President Emmanuel Macron (rear R) look on as France's Minister for Europe and Foreign Affairs Jean-Noel Barrot (R) and CEO of Mubadala Investment Company Khaldoon Al Mubarak (L) sign an agreement on AI during a ceremony as part of Zayed al-Nahyan's visit to France at the presidential Elysee palace in Paris, on February 6, 2025. Global experts will debate threats from artificial intelligence (AI) at a gathering in Paris on February 6-7, 2025, ahead of a summit of world leaders on the fast-moving technology.
In recent years, capital from the Arabian Gulf has become an increasingly significant force in shaping the infrastructure and digital landscapes of emerging markets. While historically known for oil and gas wealth, Gulf states are now repositioning themselves as global investment hubs with a clear focus on technology, infrastructure, and sustainable development. Nowhere is this shift more evident than in the wave of Gulf-funded data centre projects emerging in BRICS+ nations—highlighting a powerful opportunity for deeper cooperation across the Global South.
A compelling example of this new dynamic is unfolding in Turkey, a prospective BRICS+ partner and regional digital leader. The Turkish e-commerce platform Trendyol has entered into a landmark partnership with UAE-based Castle Investments, led by Gulf Data Hub founder Tarek Al Ashram, to build a state-of-the-art data centre in Ankara. Valued at $500 million, the facility will eventually host 48 megawatts (MW) of computing capacity. Sixty percent of that capacity will be dedicated to Trendyol's own operations, while the remainder will support external clients. As Trendyol President Çağlayan Çetin put it, the project reflects the company's "confidence in Turkey's strong digital ecosystem" and underscores its commitment to local and regional expansion.
The project is only the beginning. Gulf financial institutions such as Dubai Islamic Bank and Emirates NBD have extended substantial credit lines to Turkcell, one of Turkey's largest telecom providers. These loans—totaling more than $263 million—are aimed at expanding Turkcell's infrastructure and boosting its data centre capabilities. Meanwhile, Khazna Data Centres, based in Dubai, has also confirmed its investment in the Ankara data hub and announced plans to build an artificial intelligence (AI) facility with up to 100MW of capacity.
Infrastructure Investment as a Pathway to Industrialisation
These developments illustrate how Gulf capital is helping to scale up critical digital infrastructure in Turkey, with ripple effects that promise to boost entrepreneurship, industrial capacity, and regional integration. This model offers critical lessons for BRICS+ nations seeking to mobilise cross-border investment aligned with their development priorities.
One of the most immediate impacts of Gulf investment is its role in closing the infrastructure gap across BRICS+ countries. In many of these economies, outdated or underdeveloped infrastructure remains a constraint on growth and innovation. The injection of Gulf capital, particularly into high-impact sectors like telecommunications, logistics, and clean energy, can help fast-track infrastructure modernisation. These investments are not just financial; they often come bundled with operational expertise, technology transfers, and long-term partnerships that contribute to sustainable industrial growth. The Turkish example, where Gulf-backed data hubs are accelerating digital transformation, is a case study in how targeted infrastructure finance can act as a multiplier for broader economic development.
Fueling Digital Ecosystems and South-South Cooperation
Beyond infrastructure, Gulf investments are enabling the diffusion of cutting-edge technologies that support industrialisation and inclusive innovation. By establishing high-performance data centres and AI facilities, investors are laying the foundation for BRICS+ countries to harness the full potential of the Fourth Industrial Revolution. These platforms create environments in which startups, SMEs, and research institutions can flourish. According to Gökhan Say, CEO of CyBridge Capital, the more infrastructure that is built, "the more players entering the market," leading to dynamic ecosystems that empower local innovators and facilitate global integration. In Turkey, such developments are already creating cost-effective pathways for start-ups to scale globally, a pattern that could be replicated across Africa, Latin America, and Asia.
At a geopolitical level, Gulf-BRICS+ investment partnerships signify a profound shift toward a more balanced and multipolar world order. As traditional Western capital flows become more risk-averse or politically conditional, countries within the Global South are increasingly turning to one another for financing, expertise, and development cooperation. The growing involvement of Gulf investors in BRICS+ economies aligns with this broader movement toward South-South collaboration. These investments offer financial autonomy while reinforcing the strategic ties that underpin the BRICS+ framework. By investing in infrastructure and technology in allied regions, the Gulf states not only diversify their own economies but also contribute to building a more resilient and interconnected Global South.
The Gulf's deepening role in BRICS+ investment is more than opportunistic finance—it is a strategic lever for economic transformation. By targeting high-growth sectors like digital infrastructure, AI, and clean energy, Gulf investors are helping to realise the developmental aspirations of the BRICS+ group. The partnership between Trendyol and Castle Investments is not just about data—it's about a new architecture of cooperation where capital, technology, and trust flow southward, redefining the future of global development.
Written by:
*Dr Iqbal Survé
Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN
*Chloe Maluleke
Associate at BRICS+ Consulting Group
Russian & Middle Eastern Specialist
**The Views expressed do not necessarily reflect the views of Independent Media or IOL.
** MORE ARTICLES ON OUR WEBSITE https://bricscg.com/
** Follow @brics_daily on Twitter for daily BRICS+ updates and instagram @brics_daily
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Daily Maverick
15 hours ago
- Daily Maverick
MTN faces legal reckoning: Turkcell's $4.2 billion claim exposes alleged corruption and bribery
A $4.2-billion corruption claim, including allegations of bribery and geopolitical interference: MTN's long-running Irancell saga is finally knocking at the doors of South Africa's highest court. More than two decades since Iran issued its first private mobile network licence, a tangled web of geopolitics, bribery allegations and courtroom battles has landed squarely at the feet of South Africa's Constitutional Court. First, some background. The stakes? A $4.2-billion claim. The claimant? Turkish mobile giant Turkcell. The accused? The MTN Group, South Africa's telecommunications crown jewel. At the heart of the matter lies the 2005 award of Iran's mobile licence to MTN – after Turkcell had already been named the winner. Now, after years of legal ping-pong, Turkcell's claim of corruption and foul play is finally inching towards a South African trial. MTN is trying to stop that from happening. The smoking gun Turkcell's legal counsel, New York-based King & Spalding's Cedric Soule, doesn't mince his words. 'MTN sought to obtain illegally what it could not win through honest competition,' he told Daily Maverick. The allegations, which are laid out in filings and interviews, read like an international spy thriller: Bribing foreign officials, including Javid Ghorbanoghli, then Iranian deputy foreign minister for the Africa Bureau, and South Africa's then ambassador to Tehran, Yusuf Saloojee; Trading influence at the United Nations nuclear watchdog, promising to help Iran avoid sanctions; Promising prohibited defence equipment, including Rooivalk attack helicopters and frequency-hopping radios, to sweeten the deal (Turkcell claims it has evidence, as yet undisclosed, that MTN communicated with Denel and Iranian officials). According to Turkcell, all this happened so that MTN could elbow its way into a $31-billion mobile market and walk away with the licence that should have gone to Turkcell. The deal was sealed days after South Africa abstained from a crucial vote related to Iran's nuclear programme at the International Atomic Energy Agency (IAEA) in late 2005. The vote concerned whether to report Iran to the UN Security Council for failing to comply with its IAEA Safeguards Agreement. But the abstention was seen as a deliberate act, motivated by concerns about the procedural fairness of the resolution and a desire to maintain the IAEA's authority. Specifically, South Africa's representative to the IAEA, Abdul Samad Minty, argued that the resolution was flawed and premature, as it bypassed the IAEA board of governors' role in the verification process. Minty said at the time that 'South Africa's commitment is to the IAEA's integrity and impartiality and is reluctant to undermine the agency's authority'. South Africa has also enjoyed good relations with Iran. Crucially, this abstention was not an isolated incident. South Africa also abstained on similar resolutions in 2006, highlighting a consistent stance on the matter. Soule says Turkcell 'won the licence fair and square' and that MTN's conduct undermined the integrity of international business. 'This case is about accountability,' he says. 'And it belongs in a South African courtroom.' A strong rebuttal MTN, for its part, has always dismissed Turkcell's claims as 'a fabric of lies' and a 'frivolous shakedown'. Its legal team, speaking about background exclusively to Daily Maverick, continues to lean heavily on the Hoffmann Report – a 2013 internal investigation led by British judge Lord Leonard Hoffmann. This report found 'no conspiracy,' labelled Turkcell's key witness a 'fantasist' and said MTN executives were in the clear. It even found that although a $400,000 payment had been made to an Iranian intermediary, the money's purpose couldn't be determined – and was irrelevant to Turkcell's central claims. MTN also argues that Turkcell failed to comply with Iranian laws after a shift in government policy. 'They failed to adjust their shareholding in time,' MTN argues, 'and were lawfully excluded from the process.' As for the most salacious allegations – military gear and political favours – MTN says it would be impossible for its actions to have altered Iranian legislation or international diplomacy. The Hoffmann Report indicates that a general election took place in Iran on 20 February 2004, which resulted in a new parliament taking office in May 2004. This new Iranian parliament was overwhelmingly dominated by conservatives who opposed the government's policy of privatisation and foreign inward investment, particularly in relation to the cellphone service. The Single Article Act, designed to strengthen financial discipline, stemmed from this shift in parliamentary power. Snookered in ownership Following the Single Article Act, the parliament passed another significant piece of legislation in February 2005, known as the Irancell Act. This act imposed further conditions, requiring that 51% of the shares in the operating company be held by Iranian entities and that all board decisions require the approval of at least 50% of the shareholders. This was understood to be due to concerns about foreign entities becoming heavily involved in what was considered critical infrastructure in Iran. These legislative changes created significant obstacles for Turkcell, which had initially won the tender with a plan to control 70% of the shares. 'Turkcell was given multiple opportunities to negotiate with its existing partners to reach a compliant deal, but they didn't do that or they were not able to do that,' MTN's legal team argues. The team points to a specific deadline – 4 September 2004 – when the Ministry of Telecommunications demanded a compliant deal from Turkcell, which the Turkish company failed to deliver. 'Turkcell has never explained how MTN's [alleged] corrupt practices would have led to a change in national legislation,' MTN's lawyers emphasise, arguing that their client was simply better positioned to navigate Iran's evolving regulatory landscape. After Turkcell's 2012 US complaint, MTN commissioned the independent investigation led by Lord Hoffmann, a retired British Supreme Court judge. But Turkcell has 'strongly rejected MTN's repeated reliance on the Hoffmann Report', with Soule calling it 'unreliable and irrelevant' to current proceedings. The Turkish company has criticised the investigation, claiming: Conflicts of interest: Lord Hoffmann's daughter, Jennifer, worked for MTN Mobile Money during the relevant 2004-2006 period and also in the MTN Banking joint venture with Standard Bank, which was involved in the financial transfers. 'Lord Hoffmann had a huge conflict of interest,' Soule argues. Lack of independence: The committee was composed of MTN non-executive directors and used MTN's own external lawyers (Freshfields Bruckhaus Deringer) instead of independent counsel. The committee even thanked the Islamic Republic of Iran for support – problematic given Iran's alleged involvement in the wrongdoing. Insufficient rigour: The committee didn't actually interview key witnesses like former MTN director in Iran Chris Kilowan, then commercial director Irene Charnley (to whom Jenny Hoffmann reported) or former MTN CEO Phuthuma Nhleko to determine credibility, relying only on written statements prepared with lawyers' help. The committee did not independently seek documents, relying instead on what MTN's lawyers provided. Turkcell characterises the report as essentially 'a PR exercise' to review curated evidence and reach predetermined conclusions. The company declined to participate owing to concerns about the committee's structure and independence. Where we are now In April this year, the Supreme Court of Appeal handed Turkcell what it called a 'procedural win' – confirming that South African courts do have jurisdiction to hear the matter. It dismissed MTN's argument that South Africa cannot police corporate misconduct committed abroad. 'Not on our watch' was how the court framed its message to South African firms doing business in murky waters. MTN is now seeking leave to appeal to the Constitutional Court in a last-ditch effort to stop the case from going to trial. Turkcell has filed its opposition. 'The report never seriously asked: what if we did do some of these things?' says Soule. 'It only asked: is Turkcell's story perfect?' MTN has argued that Iranian courts would offer a fair alternative venue for the dispute, but Turkcell has strongly rejected that suggestion. The Turkish company cites 'well-documented concerns regarding judicial independence and due process' in what it describes as a 'religious dictatorship where dissent is not tolerated'. More practically, Turkcell argues that Iranian courts wouldn't be able to compel MTN executives, who reside in South Africa, to appear and testify – a crucial limitation given the nature of the allegations. But the fact remains that Turkcell also refused to participate in the Hoffmann inquiry, claiming its witnesses would not be safe and due process could not be guaranteed in Iran. Although the Supreme Court of Appeal agreed that Iranian law would apply to aspects of the case, Turkcell sees this as its 'only and probably final opportunity' to get a substantive ruling on MTN's alleged misconduct. If it proceeds, this would become one of South Africa's most explosive corporate trials. MTN also faces what amounts to a 'reputational trial in the court of public opinion', regardless of the legal outcome. The company holds a 49% minority stake in Irancell, which it says is not under MTN Group's operational control. The case also highlights claims of a complex interplay between corporate interests and state foreign policy. President Cyril Ramaphosa served as MTN Group chairperson (a non-executive role) more than 12 years ago, resigning from the position in May 2013. But MTN asserts that any suggestion of improper benefit from his time at the company is 'false and misleading', and emphasises that it does not conduct business in alignment with government foreign policy. The Constitutional Court is expected to announce its decision on MTN's leave to appeal within the next three months. MTN's other Iran headache MTN just can't catch a break in the Middle East, with new scrutiny coming from the US. Congresswoman Elise Stefanik has written a letter urging Bank of New York Mellon (BNY Mellon) to investigate its ties with MTN. Her letter highlights concerns about MTN's links to Iran, Hamas and President Cyril Ramaphosa's finances. She calls for BNY Mellon to halt its role as the bank handling MTN's shares in the US, cooperate with US authorities, and disclose its involvement with MTN and its Iranian affiliates. A pending lawsuit, Zobay v MTN, accuses MTN of financing terrorism, as defined by the US Anti-Terrorism Act. Stefanik claims significant legal precedent exists, which MTN denies. Senior MTN executive Nompilo Morafo rejected Stefanik's claims in an interview with Daily Maverick, stating that the allegations have not been tested in court. Morafo also dismissed accusations against Ramaphosa, who chaired MTN 12 years ago, and insisted MTN has no operational control in Iran, holding only a minority share in Irancell. MTN says it 'remains committed to human rights', and its directors have pushed for a pivot to the company's pan-African strategy, despite litigation and pressure from US legislators. DM
eNCA
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- eNCA
China's top diplomat to visit EU, Germany, France next week
China's top diplomat Wang Yi will head to Europe next week for talks with counterparts from the European Union, Germany and France, Beijing said on Friday as it seeks to shore up fraught ties with the bloc. Beijing has sought to improve relations with Europe as a counterweight to superpower rival United States, though frictions remain over trade and China's close ties with Russia despite its war in Ukraine. China and the European Union will also host a summit next month marking 50 years since Beijing and Brussels established diplomatic ties. Wang's trip will take him to Brussels, France and Germany and last from next Monday to Sunday, Beijing said. "The world is undergoing an accelerated evolution of a century-old change, with unilateralism, protectionism and bullying behaviour becoming rampant," foreign ministry spokesman Guo Jiakun said -- a thinly-veiled swipe against the United States under President Donald Trump. China's top diplomat will meet with EU counterpart Kaja Kallas at the bloc's headquarters in Brussels for "high-level strategic dialogue", he said. In Germany he will hold talks with Foreign Minister Johann Wadephul on diplomacy and security -- his first visit since Berlin's new conservative-led government took power in May. China looks forward to "strengthening strategic communication, enhancing pragmatic cooperation, and promoting new developments of the China-Germany comprehensive strategic partnership," Guo said. Ties between Berlin and Beijing, he added, were "injecting certainty, stability, and positive energy into a turbulent world". In France, Wang will meet minister for Europe and foreign affairs Jean-Noel Barrot, who visited China in March. "Foreign Minister Wang Yi will exchange views with the French side on the international situation, China-France ties and China-Europe relations," Guo said. And in Brussels Wang will also hold talks with Belgium's Prime Minister Bart De Wever and Deputy PM and Foreign Minister Maxime Prevot, Beijing said. - Trade spat - Ties between Europe and China have strained in recent years as the bloc seeks to get tougher on what it says are unfair economic practices by Beijing and the yawning trade imbalance between them. After the European Union placed tariffs on Chinese EV imports, China retaliated with its own duties, including on French cognac. An agreement on cognac has been reached with Beijing but not yet formally approved by the Chinese Ministry of Commerce, a source in the French Economy Ministry told AFP. The source said finalization was partially linked with the EU's ongoing negotiations over electric vehicles. Tensions mounted last week after the European Union banned Chinese firms from government medical device purchases worth more than five million euros ($5.8 million), in retaliation for limits Beijing places on access to its own market. The latest salvo in trade tensions between the 27-nation bloc and China covered a wide range of healthcare supplies, from surgical masks to X-ray machines, that represent a market worth 150 billion euros ($176 billion) in the EU. In response, China accused the EU of "double standards". Another tricky point has been rare earths. Beijing has since April required licences to export these strategic materials from China, which accounts for more than 60 percent of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency. The metals are used in a wide variety of products, including electric car batteries, and there has been criticism from industries about the way China's licences have been issued. China has proposed establishing a "green channel" to ease the export of rare earths to the European Union, its commerce ministry said this month. By Mary Yang
IOL News
a day ago
- IOL News
BRICS: The key to a new World Order through expansion
At the 2023 BRICS Summit in South Africa, six more countries were accepted as members into BRICS. Image: GCIS THE annual BRICS Summit, to be attended by heads of state, takes place in Brazil's Rio de Janeiro in early July. BRICS (Brazil, Russia, India, China and South Africa) is expanding at the speed of light. At the 2023 BRICS Summit in South Africa, six more countries were accepted as members into BRICS. They were Ethiopia, Egypt, UAE, Iran, Qatar and Argentina. Argentina pulled out soon afterwards following an electoral victory by a pro-West Libertarian Party led by President Javier Milei in Buenos Aires. Yet as things stand, up to 40 countries are knocking on the door of BRICS. They are led by the great Asian regional powerhouse, Indonesia. I paint a picture of the role of BRICS in global affairs to illustrate its emergence as a power of great significance. The BRICS Summit in Brazil takes place at a time of extraordinary changes in geopolitics, underscored by the rapidly unfolding disintegration of Western hegemony that has held firm since the end of WWII in 1945. The US, the major glue that has led the West as a united front through formations such as Nato, among others, has unleashed tariffs on Europe in a move that has shaken the foundation of the Western alliance. Under President Donald Trump, Washington's main focus is to 'Make America Great Again', or 'America First' foreign policy that has left the globalists reeling. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The scramble to keep together the crumbling cookie is a spectacle to watch. Just this week at the Nato summit at The Hague, Trump had to be cornered into grudgingly endorsing Nato's Article 5, which refers to the principle of 'an attack on one is an attack on all'. In fact, so desperate was Nato secretary-general Mark Rutte to have Trump not mess up the meeting that he called Trump 'Daddy'. For far too long, Europe has been scavenging on the US. 'The European Union was born to screw the United States,' Trump lashed out in February this year. It is the EU to raise its budget spending on defence to at least 5% of its national budgets, Trumped insists, and the West has had to reluctantly agree for fear of being totally abandoned by Washington. In contrast, the rise of the Global South as a force to be reckoned with is intertwined with the impact in the growing importance of BRICS in geopolitics. Across the entire Majority World, the common message is of solidarity, togetherness, cooperation and mutual pursuit of common goals. For instance, Brazil will hold the BRICS Summit under the theme: 'Strengthening Global South Cooperation for More Inclusive and Sustainable Governance'. As the Global South works hard to strengthen its collective rising power in the 21st century, the Global North is grappling with growing schism between member-states, particularly in the ranks of the EU, where Western Europe continues to subtly treat former Soviet Union Eastern European countries as inferior. Addressing the St Petersburg International Economic Forum (Spief) last week, Russian President Vladimir Putin put it bluntly, saying: 'The dominance of the West is over.' Similarly, the foreign policy of China has consistently been premised on the principles of 'shared future', characterised by cooperation that leaves no one behind, great or small. The concerted mobilisation efforts by BRICS countries, marked by a geographic and ideological sense of solidarity borne from the era of liberation wars against colonialism and imperialism, are an emotional magnetic force that drives BRICS. South Africa, another key component of the strategic geopolitical bloc that is BRICS, will play host to the G20 Leaders' Summit at the end of this year under a similar theme that advocates for greater cooperation across the Majority World, as International Relations scholars refer to the Global South nowadays. South Africa's presidency of the G20 will focus on the theme: 'Solidarity, Equality, Sustainability'. The theme so irked the US that the Trump administration's Secretary of State Marco Rubio boycotted the G20 meeting of foreign ministers in South Africa. There have been unabating fears that the US could boycott the end-of-year meeting in South Africa as bilateral ties ad been frosty for an extended period. However, word in diplomatic circles is that the US has had a change of heart and will see Trump attend the G20 meeting. Relations between intra-BRICS countries continue to grow stronger by the day. India emulated the rest of the Global South when it refused to support the Western economic sanctions against Russia. Instead, India has been reselling Russian oil and gas to Europe under the obvious guise that the products were 'made in India'. The BRICS Bank, also known as the New Development Bank, is quietly positioning itself to counter the lending dominance of the US-led IMF and World Bank. Trade by BRICS countries accounts for 40% of the global trade, according to statistics. Additionally, the combined population of BRICS countries account for nearly 50% of the world's population. There are ample opportunities for BRICS to rapidly morph into the most powerful global body, more powerful than the sectarian G7 and the crumbling UN system that continues to be undermined by US-led Western unilateralism. There are a number of strategically aligned Global South entities that, working together, can achieve a lot more, and faster. For example, at this week's Eurasian Economic Forum held in the capital of Belarus, Minsk, President Putin made some telling remarks when he revealed that 'BRICS is working on a digital investment platform'. Putin explained that such an initiative could also be rolled out across the Eurasian Economic Union (EAEU). Putin elaborated: 'We are developing this platform within BRICS, and these ideas could be implemented in the EAEU too.' The pursuit and formation of networks within and across the Majority World, nurturing of cooperative initiatives and unity of purpose are some of the major principles upon which BRICS can serve as a catalyst to the reformation of the Majority World into a true pole of power in international affairs.
