Saudi Arabia has reaffirmed its position as the US’ most important military partner in the Gulf, concluding $33.7bn-worth of arms deals in 2011.

According to a report published by the US Congressional Research Service, Saudi Arabia’s military spending made it the world’s largest buyer of US arms last year. The massive sum accounted for more than half of all US arms sales in 2011, pushing overall revenues to $66.3bn, a record year for the country’s defence industry. By comparison, the US reported just $21.4bn-worth of arms deals in 2010.

The result also consolidated the US’ position as the world’s largest arms exporter. By comparison, former Cold War rival Russia reported just $4.8bn-worth of arms sales agreements in 2011.

Rising tensions in the Gulf over Iran’s contentious nuclear development programme has proven a windfall for US arms exporters. While Saudi Arabia dominated sales, the UAE ranked third overall among developing nations purchasing weapons from the US in 2011, with $4.5bn-worth of orders placed. The UAE spent $3.49bn on Lockheed Martin’s Terminal High Altitude Area Defence system, which is an advanced defence shield designed to protect its cities from missile attack. It also purchased 16 Chinook helicopters from Boeing at a cost of $940m.

The bulk of Saudi Arabia’s arms spending went towards the purchase of 84 Boeing F-15 fighter jets. The country’s investment saw it account for almost 40 per cent of all arms delivery contracts reported globally in 2011.

Developing nations continue to account for the bulk of international arms sales, with spending increasing considerably over the past decade. Between 2008 and 2011, the total value of all international arms deals topped $261.8bn compared with $206bn between 2004 and 2007.

“During 2004-07, developing world nations accounted for 66.7 per cent of the value of all arms transfer agreements made worldwide. During 2008-2011, developing world nations accounted for 79.2 per cent of all arms transfer agreements. In 2011, developing nations accounted for 83.9 per cent of all arms transfer agreements made worldwide,” says the report.

Between 2008 and 2011, Saudi Arabia also ranked first in arms transfer agreements signed with the Western countries including the US, with orders rising to $52.1bn from $23.6bn in the three years to 2007.

“The increases reflect the military modernisation efforts undertaken by Saudi Arabia since the 1990s,” says the report. “The total value of all arms transfer agreements with developing nations from 2004-11 was $344.7bn. Saudi Arabia alone accounted for almost 22 per cent of all developing-world arms transfer agreements during these eight years. Between 2008 and 2011, Saudi Arabia placed orders worth $52.1bn. This constituted 25.1 per cent of all arms transfer agreements with developing nations.”

“The US arms agreements with Saudi Arabia were extraordinary, and represent, by far, the largest share of US agreements with the world or the developing world in 2011.”

GLOBAL ARMS TRANSFER AGREEMENTS, BY SUPPLIER, 2008-11 ($m)