Gold prices in Saudi Arabia fall after global drop

Saudi Arabia may be expanding its ballistic missile programme, according to satellite imagery analysed by American researchers. The kingdom is reportedly building a larger ballistic missile plant at al-Duwadimi in Riyadh Province to construct more advanced solid-fuel missiles. These missiles are capable of carrying heavier payloads over greater distances.

The expansion comes as Saudi Arabia faces an increasing number of missile and drone attacks from Yemen's Houthis, a group aligned with Iran. The Houthis have intensified their attacks since July, shattering a UN-brokered truce that had held since 2022. Riyadh reportedly began constructing ballistic missiles domestically with Chinese assistance in 2021, but this relationship with Beijing dates back several decades.

In the 1980s, Saudi Arabia first acquired conventional DF-3 intermediate-range ballistic missiles from China, with an impressive range of over 2,000 miles but low accuracy. In 2007, Saudi Arabia reportedly obtained more accurate DF-21 medium-range ballistic missiles with conventional payloads. Recently, footage of missile debris in Yemen indicated that Saudi Arabia may have fired a DF-15A short-range ballistic missile in combat, marking its first use of one of its Chinese-designed missiles.

Analysts suggest that Riyadh's expansion in ballistic missile capabilities reflects a broader strategy of diversifying its military capabilities, allowing for long-range strikes without exposing aircraft to enemy air defences. Additionally, expanding domestic missile production could give Saudi Arabia greater control over its strike capabilities and reduce its dependence on foreign deliveries.