Middle East Tensions: How Do Iran and Saudi Arabia Compare Militarily?
Tensions in the Middle East have continued to intensify, with missile and drone attacks becoming an increasingly important part of regional conflicts. Against this backdrop, one question is being discussed widely: How much do Saudi Arabia and Iran spend on their militaries, and how does Iran maintain a significant missile and drone capability despite spending far less than Saudi Arabia?
According to figures published by the Stockholm International Peace Research Institute (SIPRI), Saudi Arabia spent approximately $83.2 billion on its military in 2025, making it one of the world's largest military spenders and ranking it among the top eight countries globally.
Iran's officially reported military expenditure, meanwhile, was significantly lower, at roughly $7.4 billion.
This represents a major difference in officially reported military spending. However, the headline numbers do not tell the entire story.
Iran's Official Military Budget May Not Reflect Its Full Military Spending
SIPRI has noted that Iran's official military expenditure figures may not capture all of the resources supporting the country's military capabilities.
Some parts of Iran's missile and drone programs have reportedly been supported through sources outside the conventional defence budget, including revenues connected to oil and other state resources.
Because of this, comparing the two countries solely on the basis of their officially announced defence budgets can give an incomplete picture of their military capabilities.
Iran has developed a military model that is quite different from that of Saudi Arabia.
Iran's Focus on Missiles and Drones
Over several decades, Iran has faced international sanctions and restrictions on access to advanced foreign weapons and military technology.
In response, Tehran has placed considerable emphasis on developing domestic capabilities, particularly in areas such as:
- Ballistic missiles
- Cruise missiles
- Unmanned aerial vehicles (UAVs)
- Air-defence systems
- Domestic military manufacturing
- Missile guidance and aerospace technologies
This approach has allowed Iran to develop and maintain a large inventory of relatively low-cost missile and drone systems without relying entirely on expensive imported weapons.
Increased Funding for Missile and Drone Production
According to SIPRI's analysis, Iran's 2025 budget included significant increases for organizations involved in its aerospace and weapons industries.
Funding for HESA, an Iranian company involved in the production of military aircraft and drones, reportedly increased by around 50%.
Meanwhile, funding for the Aerospace Industries Organization (AIO), which is associated with Iran's ballistic-missile program, reportedly increased by approximately 44%.
These increases indicate the continued importance Iran places on domestic aerospace, drone and missile capabilities.
Saudi Arabia's Military Model Is Different
Saudi Arabia follows a substantially different defence strategy.
Riyadh has historically spent large amounts on modern military equipment purchased from international suppliers. Its armed forces operate sophisticated aircraft, air-defence systems, armoured vehicles, naval platforms and other advanced weapons systems.
The country has also invested heavily in modernizing its military infrastructure and strengthening its air and missile-defence capabilities.
Saudi Arabia's military expenditure therefore includes not only weapons but also areas such as:
- Fighter aircraft
- Air-defence systems
- Naval equipment
- Armoured vehicles
- Military infrastructure
- Training and maintenance
- Personnel and operational costs
- Advanced defence technology
As a result, a large defence budget does not automatically translate into a larger inventory of inexpensive missiles and drones.
Why Can Iran Build So Many Missiles and Drones?
One important factor is cost.
Modern fighter aircraft, air-defence systems and sophisticated military platforms can cost hundreds of millions of dollars per system when acquisition, maintenance, training and supporting infrastructure are included.
Missiles and drones can be considerably cheaper to manufacture on a per-unit basis, particularly when a country has developed domestic production capabilities.
Iran's strategy has therefore focused heavily on systems that can provide long-range strike capability without requiring the same level of financial investment associated with a modern conventional air force.
This does not mean that missiles and drones are a substitute for an entire military. Rather, they form an important part of Iran's broader military strategy.
Quantity, Cost and Strategy Matter
Military power cannot be measured simply by comparing two countries' annual defence budgets.
Several other factors are important, including:
1. Weapons procurement
A country purchasing expensive foreign weapons may spend considerably more than a country producing simpler systems domestically.
2. Domestic manufacturing
Local production can reduce dependence on international suppliers and allow a country to manufacture weapons at lower marginal costs.
3. Military strategy
Different countries prioritize different capabilities. One may focus on fighter aircraft and air-defence systems, while another may emphasize missiles, drones and asymmetric warfare capabilities.
4. Sanctions and international restrictions
Iran's access to international arms markets has been restricted for many years. These restrictions have contributed to its emphasis on domestic weapons development.
5. Off-budget resources
Official defence figures may not capture every resource used to support military and strategic programs.
Saudi Arabia Has a Major Technological Advantage in Some Areas
The difference should not be interpreted as meaning that Iran has a larger or more advanced military than Saudi Arabia.
Saudi Arabia has invested heavily in modern Western military technology and operates sophisticated aircraft, air-defence systems and other advanced platforms.
Its defence partnerships and access to international weapons markets provide capabilities that are difficult to replicate through domestic production alone.
Iran, on the other hand, has developed a military structure designed around different priorities.
Its missile and drone programs are particularly important because they provide Tehran with long-range strike capabilities while reducing its dependence on conventional air power.
The Bigger Picture
The military balance between Iran and Saudi Arabia is therefore much more complicated than a simple comparison of defence budgets.
Saudi Arabia spends far more money officially on defence, while Iran has developed a lower-cost, domestically focused model that places significant emphasis on missiles and drones.
Iran's ability to manufacture these systems domestically, combined with decades of investment in missile technology and the use of resources outside conventional defence budgets, helps explain why its military capabilities cannot be measured simply by looking at its official annual defence spending.
At the same time, Saudi Arabia's much larger defence budget supports a broad range of sophisticated military capabilities, including advanced aircraft, air-defence systems, naval assets and other modern platforms.
Conclusion
The difference between Saudi Arabia and Iran demonstrates an important point about modern warfare: military spending and military capability are related, but they are not exactly the same thing.
Saudi Arabia has built a defence model based heavily on expensive, technologically advanced equipment and international military procurement.
Iran has pursued a different path, emphasizing domestic production, ballistic missiles, cruise missiles and drones.
Therefore, the large gap in officially reported military spending does not by itself explain the military capabilities of the two countries.
Understanding the regional military balance requires looking beyond headline defence budgets and examining weapons production, procurement, technology, military strategy, domestic manufacturing and alternative sources of military funding.
0 Comments