With crude oil prices hovering below $50 a barrel in recent months, Saudi Arabia’s budget is rapidly shrinking. But despite cuts and financial challenges, ongoing internal and external concerns are driving an increase in defense spending.

The kingdom, which is engaged in an air, ground and naval operation on its southern border with Yemen alongside gulf allies the United Arab Emirates, Qatar and Bahrain, has also been bombing Islamic State extremists in Syria with the US-led international coalition.

Furthermore, analysts state, spending on internal security has sharply increased to stop the threat of terrorism. […]