The largest increase in the region—and indeed the world—between 2006
and 2015 was by Iraq. It has rebuilt its armed forces in the aftermath of the
US-led invasion and subsequent withdrawal, and is now embroiled in a war
with the Islamic State. Iraq’s military spending was $13.1 billion in 2015, up
35 per cent from 2014, and up 536 per cent from 2006 (see table 6 on page 7).
Iran’s military expenditure decreased by 30 per cent between 2006 and
2015, with spending in 2015 standing at $10.3 billion. The main fall occurred
in 2012–13 after the European Union imposed a series of economic and
fi nancial sanctions against Iran in January 2012. The lifting of EU (and some
US sanctions) in January 2016 is expected to boost the Iranian economy and
may lead to a rise in military expenditure.