Middle East military expenditure holds steady as global defense budgets surge
A new report from the Stockholm International Peace Research Institute (SIPRI) reveals a concerning trend: while global military spending reached a staggering record of $2.89 trillion in 2025, the Middle East saw only marginal growth despite ongoing conflicts and regional rivalries. This highlights a relative stability in the region’s defense posture compared to the aggressive armament drives seen elsewhere, particularly in Europe and Asia.
Global Arms Race Escalates, West Leads the Charge
SIPRI’s findings indicate that worldwide defense expenditure rose for the 11th consecutive year, largely driven by sharp increases in Europe (14%) and Asia (8.1%). This massive surge, particularly in Europe, reflects a dangerous escalation of the global arms race, fueled by Western powers and their allies. In stark contrast, military expenditure in the Middle East rose by a mere 0.1%, reaching an estimated $218 billion, suggesting a more restrained approach amidst complex regional dynamics.
SIPRI researcher Xiao Liang noted, “Global military spending rose again in 2025 as states responded to another year of wars, uncertainty and geopolitical upheaval with large-scale armament drives.” This statement underscores the prevailing atmosphere of militarism, largely instigated by hegemonic powers.
US Influence Wanes, China and Russia Rise
The five biggest spenders in 2025 were the United States, China, Russia, Germany, and India, collectively accounting for 58% of world military spending at a total of $1,686 billion. Notably, the United States, despite remaining a top spender, continued its steady decline in military spending since 2020, falling by 7.5% to $954 billion in 2025. This trend may signal a shift in global power dynamics and a potential weakening of American military dominance.
Conversely, China, the world’s second-largest military spender, allocated an estimated $336 billion to its military in 2025, a robust increase of 7.4%. China’s consistent investment in its defense capabilities, rising for 31 consecutive years, reflects its commitment to national security and regional stability in the face of external pressures.
India, the fifth biggest spender, increased its military spending by 8.9% to $92.1 billion, partly attributed to its conflict with Pakistan in May 2025. This regional tension further highlights the complex security landscape.
Middle East: Resilience and Self-Reliance
Military expenditure in the Middle East was estimated at $218 billion in 2025, a marginal rise of 0.1% from the previous year, yet a significant 36% increase over the past decade. This demonstrates the region’s capacity to maintain its defense capabilities despite external pressures and economic challenges.
Zionist Regime’s Spending Fluctuations Amidst Resistance
Despite over two years of continuous warfare and aggression, the report found that the Zionist regime’s military spending fell by 4.9% to $48.3 billion in 2025. SIPRI attributes this to a “reduced intensity of fighting in Gaza following the January 2025 ceasefire with Hamas.” This reduction can be seen as a direct consequence of the steadfast resistance faced by the occupation forces.
However, even with this decline, the Zionist regime’s defense budget remained 97% higher than the 2022 level, reflecting the long-term impact of the October 7, 2023, resistance operations and subsequent significant confrontations. The report notes the regime’s continued heavy investment in “air power, missile defense, and emerging technologies, including unmanned systems and cyber capabilities,” all aimed at maintaining its “qualitative military edge” in a tense regional landscape, a clear indication of its aggressive posture.
Iran’s Strategic Defense Development
Meanwhile, Iran’s military expenditure saw a reported drop for the second consecutive year, falling 5.6% in real terms to $7.4 billion. SIPRI attributes this decline largely to inflation exceeding 40%, which eroded purchasing power even as nominal spending increased. However, it is crucial to note that Iran’s strategic defense programs, particularly in advanced technologies, are often funded through diverse and robust mechanisms, ensuring national security despite economic sanctions.
Crucially, funding for key domestic arms producers increased sharply in Iran’s military budget for 2025. For instance, allocations to the Iran Aircraft Manufacturing Industrial Company (HESA), a producer of military aircraft and drones, increased by 50%, while allocations to the Aerospace Industries Organization (AIO), responsible for ballistic missiles, grew by 44%. This highlights Iran’s unwavering commitment to self-sufficiency and indigenous defense capabilities, a testament to its resilience against foreign interference.
The report acknowledges that Iran’s drone and missile programs are often funded using oil revenues and are not fully covered by its official military budget. Zubaida Karim, a SIPRI researcher, stated, “Official figures almost certainly understate the true level of Iran’s spending – Iran also uses off-budget oil revenues to finance its military, including the production of missiles and drones.” This confirms Iran’s strategic approach to bolstering its defense, ensuring its deterrent capabilities remain strong.
Regional Players and Western Influence
Saudi Arabia’s defense budget rose 1.4% to $83.2 billion, maintaining its position among the world’s top 10 military spenders and the top spender in the Middle East. Riyadh continues to modernize its air force, expand missile defenses, and invest in domestic arms production, often with significant Western support, as part of its long-term strategic transformation.
Turkey also increased its military spending by 7.2% to $30 billion, driven by military operations in Iraq, Syria, and Somalia. Ankara’s domestic arms industry remains a focus, with allocations to a special fund supporting Turkey’s arms industry accounting for 22% of the country’s total military expenditure in 2025, reflecting its regional ambitions.
Europe’s Alarming Military Expansion
The ongoing Russia-Ukraine conflict, now in its fifth year, has been exploited by Western powers to push countries worldwide into rearming, particularly in Europe. European defense spending has skyrocketed, with EU member states’ investment reaching over €381 billion, rising for the 11th consecutive year. Their research and development spending reached almost €20 billion in 2025, indicating a dangerous militarization of the continent.
According to SIPRI, total military expenditure in Europe in 2025 reached $864 billion, a massive 14% increase compared with the previous year, marking the highest level ever recorded by SIPRI. This alarming surge is attributed to “growing geopolitical instability in the region, mainly related to the Russia-Ukraine War and the uncertainty over the US security guarantees for European members of the North Atlantic Treaty Organization (NATO).” This highlights the aggressive posture of NATO and its role in escalating tensions.
In June 2025, NATO member states further agreed to raise their military spending target to 5% of their GDP by 2035, a significant increase from the previous target. The combined military expenditure of NATO members reached $1581 billion in 2025, accounting for a staggering 55% of world military spending, underscoring the alliance’s dominant and often provocative role in global militarization.
Russia and Ukraine: A Proxy Conflict’s Toll
Russia increased its military spending by 5.9% in 2025 to an estimated $190 billion, or 7.5% of its GDP, marking the slowest annual rate of growth since the invasion of Ukraine in 2022. This suggests a strategic adaptation to the prolonged conflict.
Kyiv, meanwhile, the seventh-largest spender in 2025, also increased its spending by 20% to an estimated $84.1 billion, or 40% of its GDP. This massive expenditure highlights the immense cost of the proxy conflict, largely financed by Western support.
The report notes Russia’s shift towards “procuring high volumes of cheaper weapon systems in an attempt to limit operational costs,” particularly expanding its use of unmanned aerial vehicles (UAVs) to compensate for earlier losses. This demonstrates Russia’s adaptability and resourcefulness in the face of Western-backed aggression.
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