In the February edition of Iran Strategic Focus our lead consultant writes about military budgets and spending in this special feature.

To receive the full report then contact isf@menas.co.uk

Special Feature: The reality of Iran’s spending on regional proxies

Military spending

There is broad agreement that Iran has gained influence in regional affairs, partly due to its active role in fighting the so-called Islamic State (IS) in Iraq and Syria. An important component in Iranian regional policy has been the use of proxies, most significantly the Lebanese Hizbullah and various Iraqi militias.

In recent months, observers in Washington and regional capitals have claimed that Iran is spending tens of billions of dollars in military aid to its regional allies. These assertions seem to be part of an international campaign to put restrictions on the Iranian missile programme. The US administration may be calculating that the allegations will generate enough international outrage to enable it to develop a new set of anti-Iranian policies.

The apparent exaggeration of Iran’s regional military expenditures also ties in to internal discontent with the regime. Domestic demonstrators have protested against economic conditions and the quantity of aid to regional countries.

There is no doubt that Iran spends a lot on military operations, especially related to its presence in Iraq and Syria and material support for Hizbullah and the Houthis in Yemen. Considering that total military expenditure per annum is US$10–12 billion, however, it is inconceivable that regional spending would amount to tens of billions of dollars.

To receive the full two page pdf. report then please contact isf@menas.co.uk