Experimental Forecast the Situation of Arms Race between Iran and Saudi Arabia in the 2040s

Exacerbation of tension and regional rivalry between Iran and Saudi Arabia is important to experimental forecast the situation of future arms race between these two countries. Accordingly, the main objective of this paper is experimental forecast the situation of arms race between Iran and Saudi Arabia during the years of 2018-2040. To this regard, first, a military demand function for both countries of Iran and Saudi Arabia is simulated and by using the data from years of 1963-2017 and the Particle Swarm Optimization (PSO) algorithm, the military expenditures of the countries of Iran and Saudi Arabia are predicted for the period 2018-2040. Then, using these data and using a Richardson Arms Race Model and Canonical Co-integration Regression (CCR), the situation of arms race between Iran and Saudi Arabia is projected at 2040 horizons. According to forecasts, military spending in Iran and Saudi Arabia increase over the years 2040-2018, with a roughly upward slope (positive), which will be more significant for Saudi Arabia. The estimation of the Richardson model system of equations shows that there is an arms race between Iran and Saudi Arabia during the period of 2018-2040, so that, as a result of rising military spending on both sides, Saudi Arabia's response to military spending is much higher than Iran. A review of the situation of arms race also indicates an unstable arms race between Iran and Saudi Arabia during the years of 2018-2040.