Saudi Crown Prince Mohammed bin Salman (MBS) continues to allocate enormous funds toward military purchases, raising concerns over the kingdom’s financial priorities. Despite Saudi Arabia not currently being involved in any active wars, MBS is pushing ahead with costly weapons deals from both Russia and the United States, ignoring warnings from the International Monetary Fund (IMF) to curb government spending. These deals spotlight Saudi Arabia’s growing military expenditure at a time when the country faces potential economic challenges.
A New Arms Deal with Russia
Recent reports have revealed that Saudi Arabia is in the process of finalizing an $11 million weapons deal with Russia. The purchase includes advanced air defense systems, signifying the kingdom’s desire to diversify its sources of military equipment. While the deal with Russia is relatively modest compared to other arms purchases, it raises questions about the necessity of such investments given that Saudi Arabia is not engaged in any major conflict.
The timing of this deal is particularly concerning, as it coincides with an IMF report predicting a significant drop in Saudi Arabia’s oil revenues, which are expected to decrease to 778 billion riyals by 2029. With oil being a primary source of the kingdom’s income, the IMF has urged Saudi Arabia to reduce its government expenditures, particularly in defense, to ensure long-term financial stability.
Continued Purchases from the U.S.
In addition to the Russian deal, MBS has continued his pattern of buying high-tech weaponry from the United States. In a $770 million deal, Saudi Arabia is set to acquire advanced ammunition, including 3,000 small-diameter bombs valued at $290 million. These bombs are designed for precision strikes, particularly in urban areas. Another significant part of the U.S. arms deal includes 7,500 laser-guided Paveway IV bombs worth $468 million.
These purchases, which come on the heels of previously stalled U.S. arms deals, have drawn criticism from American lawmakers. Both Democratic and Republican members of Congress have expressed concerns about providing offensive weapons to Saudi Arabia, particularly in light of the civilian casualties in Yemen and ongoing human rights abuses.
The Military Spending Surge
Saudi Arabia’s military spending has continued to rise, despite growing concerns over its economic sustainability. In 2022, the kingdom’s defense budget soared by 16%, bringing total military expenditures to $75 billion, making Saudi Arabia the world’s fifth-largest military spender.
This surge in spending follows a pattern that has been evident for years. In 2021, Saudi Arabia allocated 17.7% of its national budget to defense, totaling $46.7 billion. While this figure represents a slight decrease from the $48.5 billion spent in 2020, the overall trend remains one of significant prioritization of defense over other sectors.
Priorities in Question
Critics have long pointed out that Saudi Arabia’s emphasis on military spending comes at the expense of critical sectors such as education and healthcare. Between 2016 and 2020, Saudi military spending exceeded $273 billion, representing 20.9% of total government expenditure. This level of spending far surpasses investments in social services, raising concerns about the kingdom’s long-term fiscal health and the well-being of its citizens.
The growing military budget is especially controversial given that the country is not actively involved in any wars. Observers argue that MBS’s defense purchases are driven more by a desire to project power and influence on the global stage than by any immediate security needs. The push to host global events, such as the 2034 FIFA World Cup, only adds to the perception that MBS is focused on image-building rather than addressing the domestic challenges Saudi Arabia faces.
A Strained Relationship with the U.S.
The ongoing arms deals with the U.S. are also notable in the context of a strained relationship between Saudi Arabia and the Biden administration. Tensions between the two countries have been high since the murder of Saudi journalist Jamal Khashoggi in 2018, for which U.S. intelligence agencies have held MBS responsible. In response to pressure from Congress, the Biden administration froze offensive weapons sales to Saudi Arabia shortly after taking office in 2021.
However, the new arms deals suggest a shift in U.S. policy, or at least a pragmatic approach toward maintaining defense contracts with a historically significant customer. Saudi Arabia remains the largest single market for U.S. weapons, despite the diplomatic strains between the two nations.
Looking Ahead
As Saudi Arabia continues to invest heavily in its military, the long-term consequences of this spending are coming under increasing scrutiny. With oil revenues projected to decline in the coming years, the kingdom’s ability to sustain such high levels of defense expenditure without impacting other critical sectors is in doubt. The IMF’s warnings about the need for fiscal restraint have so far gone unheeded, as MBS presses forward with multi-million-dollar arms deals.
Ultimately, the question remains: can Saudi Arabia afford to continue prioritizing military purchases at this scale, or will the economic pressures of declining oil revenues force a reevaluation of the kingdom’s spending priorities? For now, MBS seems committed to forging ahead, even as concerns over the future of Saudi Arabia’s economy grow.
