Military Expenditure in Saudi Arabia, 1960-2022

Saudi Arabia's military expenditure, as a percentage of GDP, experienced notable fluctuations from 1963 to 2022, reflecting the country’s geopolitical priorities and economic cycles. In the 1970s, military spending increased significantly, peaking at 16.7% of GDP in 1978. This surge coincided with a period of heightened regional tensions and the oil boom, which provided substantial revenue to support defense investments. However, expenditure began to stabilize in the 1980s, reflecting shifts in economic policy and the global oil market's volatility.

Post-1990, military spending remained steady, with spikes during moments of regional instability, such as the Gulf War (1990-91) and the Yemen conflict in the mid-2010s. Spending rose to 13.3% in 2015, showcasing the country’s strategic focus on maintaining regional influence. In recent years, expenditure has gradually declined, reaching 7.4% in 2022. This reduction aligns with Saudi Vision 2030 initiatives aimed at diversifying the economy and reducing dependency on oil revenues and defense imports.