The kingdom cancelled the grants to arm the Lebanese Army and security forces with French weapons after the Lebanese government failed to condemn an attack in January against the Saudi embassy in Iran. Saudi officials blamed the Shi’ite group Hezbollah, Lebanon’s most powerful militia and political movement, for exerting too much control over the Lebanese government and moving the country closer to Iran.

“We didn’t stop the contract. It’s just going to Saudi Arabia, not to Hezbollah,” Saudi Foreign Minister Adel al-Jubeir said at a news conference in Paris. “We have a situation where Lebanon’s decisions have been hijacked by Hezbollah. The contracts will be completed, but the clients will be the Saudi military.”

This episode underscores how Saudi Arabia — emboldened militarily, but struggling financially — is being more selective in using its checkbook diplomacy. With the global collapse in oil prices and economic pressures at home, the House of Saud is scaling back some of its aid to fellow Arab countries, especially those that fail to line up behind Saudi regional policy. Aside from cancelling the $4 billion in grants to Lebanon, Saudi officials may also be slowing down billions of dollars in aid to Egypt.

http://blogs.reuters.com/great-debate/2016/03/16/why-oil-collapse-is-forcing-saudi-arabia-to-cut-back-on-its-checkbook-diplomacy/