Saudi Arabia is predicted to become the world's fifth-largest defense spender by 2020, a new report says. The country is boosting its defense budget by 20 percent over the next five years, despite lower oil prices.

KSA's defense budget has been rising 19 percent a year since 2011, and the International Monetary Fund forecasts that the oil-rich nation will face a 20 percent fiscal deficit as its spending outpaces government revenues.

Earlier this year Saudi Arabia was named the biggest weapons spender, with imports increasing by 54 percent from 2013 to last year.