Saudi Arabia’s $83 Billion Defense Budget Fails to Stop Houthi Strikes on Riyadh
Despite spending $83 billion on defense, Saudi Arabia has suffered deadly Houthi missile strikes on its capital, exposing gaps in its air defense network. The Houthis, backed by Iran, are using advanced missiles and drones to overwhelm Saudi interceptors, while Riyadh struggles to balance military retaliation with diplomatic stability.
Key points
- Saudi Arabia spent $83 billion on defense last year, ranking it among the top ten global military spenders, yet it remains vulnerable to Houthi attacks from Yemen.
- Recent strikes on King Khalid International Airport in Riyadh killed 14 people and wounded over 300, marking the deadliest attack on Saudi soil in more than a decade.
- Houthi forces are employing a strategy similar to Russia’s, combining ballistic and cruise missiles with long-range drones to saturate and overwhelm Saudi air defense systems.
- Iranian support is critical, as UN experts have documented the transfer of advanced military technology and training to the Houthis, including missiles like the Hatem-2 and Palestine-2.
- Saudi Arabia faces a dilemma: escalating airstrikes risk further Houthi retaliation, while diplomatic accommodation is unpopular after civilian casualties, complicating Crown Prince Mohammed bin Salman’s Vision 2030 investment goals.
Background
This escalation follows a series of Houthi attacks since July, including a drone incident near Mecca in September and a deadly strike on Riyadh airport in October. The conflict has displaced 130,000 people and reignited fears of full-scale war, with the Houthis demanding an end to Saudi airstrikes and compensation. Previous US-led airstrikes in 2025 failed to eliminate Houthi leadership, and the group has since expanded its control, encircling the city of Taiz.
Why it matters
The failure of Saudi Arabia’s advanced air defenses to protect critical infrastructure undermines its image as a secure hub for global investment and tourism. The crisis highlights the limitations of current defense systems against massed, technologically advanced attacks and raises concerns about US reliability as a security partner, potentially destabilizing regional alliances and global energy markets.
What to watch
Saudi Arabia is seeking additional air defense systems from Europe and the US, though US stocks are depleted. Iran has offered to mediate talks, but the Houthis have rejected truce proposals. The US is weighing direct involvement, while Saudi Arabia must decide between escalation and diplomacy, with major corporations already shying away from events in Riyadh due to security concerns.
Want the full story? Read the original reporting
Read on CNN