What Happened: U.S. intelligence now believes that Saudi Arabia is building ballistic missiles domestically, CNN reported Dec. 24. CNN also shared satellite imagery at a base near the town of Al Dawadmi from October-November this year showing a burn test at the site that suggested the domestic production of missiles. CNN also reported that China on several occasions has transferred large amounts of missile know-how to the Arab country, according to multiple U.S. intelligence briefings this year.

Why It Matters: Saudi Arabia has been buying ballistic missiles from China since the 1980s, much to the chagrin of the United States, but this is the first evidence that Saudi Arabia is building ballistic missiles domestically as a part of King Mohammed bin Salman's overall push for the Saudi autonomy and self-reliance in defense manufacturing. Saudi Arabia developing an indigenous ballistic missile manufacturing capacity will spur the further proliferation of missile building in the Middle East, a strategic concern for the United States and Europe due to such missiles' potential threat to targets outside the region, including in Europe, and due to ballistic missiles' ability to deliver nuclear warheads.

Strategic Context: The CNN report follows a similar report in 2019 by the U.S. outlet showing an acceleration of Saudi Arabia's missile program with support from China. China's growing defense sector cooperation with Saudi Arabia and the United Arab Emirates will only come under more scrutiny as Washington homes in on China, not Iran or Russia, as the chief global threat to its interests. Washington probably will take stronger action to try to reduce Sino-Saudi missile cooperation and more spats will become public akin to the UAE suspension of its deal to buy U.S. F-35s over what it perceives as onerous U.S. conditions aimed at limiting potential technology leaks to China.