Cost no barrier to Saudi Arabia's Yemen intervention

DUBAI (Reuters) - Despite a record budget deficit caused by low oil prices, Saudi Arabia can easily afford its military intervention in Yemen and cost is unlikely to limit the duration or scale of its operations, military analysts believe.

The world's biggest oil exporter is acting while it faces the heaviest pressure on its state finances for more than a decade. Because of the oil price plunge since last year, the government has projected a deficit of $38.7 billion for 2015, and it has started drawing down the country's foreign reserves to cover the gap.