The United States and Saudi Arabia have reached a major nuclear cooperation agreement, according to the U.S. Department of Energy, establishing a legal framework for long-term collaboration in civilian nuclear energy and related strategic projects.

The Energy Department said the agreement, together with an accompanying bilateral safeguards arrangement, lays the foundation for a decades-long, multi-billion-dollar partnership. U.S. officials said the framework is intended to advance economic and strategic goals, including nuclear non-proliferation and the expansion of American nuclear technology exports.

The announcement marks a significant milestone in years of negotiations between Washington and Riyadh over Saudi Arabia's plans to develop a civilian nuclear energy sector.

Years of negotiations

The two countries have spent years discussing a deal that would provide Saudi Arabia with access to U.S. nuclear technology while creating opportunities for American companies to participate in the construction and operation of future Saudi nuclear facilities.

Nuclear cooperation has long been one of the most sensitive areas of the U.S.-Saudi relationship because of concerns over weapons proliferation and regional security.

According to sources familiar with the discussions, the proposed framework does not include the so-called "gold standard" restrictions that would explicitly bar Saudi Arabia from enriching uranium or reprocessing spent nuclear fuel. Both activities can have civilian uses but can also be part of processes associated with nuclear weapons development.

The reported absence of those provisions is expected to draw scrutiny from members of Congress and from regional partners concerned about the possibility of a wider nuclear competition in the Middle East.

Why Riyadh wants nuclear power

Saudi Arabia says nuclear energy is a key component of its long-term economic strategy.

Although the kingdom is one of the world's largest oil exporters, much of its electricity is generated using oil and natural gas. Saudi officials argue that nuclear power would allow more crude oil to be exported while helping meet energy demand and supporting efforts to reduce emissions.

• Saudi Arabia in talks with U.S. for defence pact, FT reports
• Pakistan to share nuclear shield with Saudi Arabia

Nuclear energy could also support industries such as water desalination and other energy-intensive sectors that are critical to the country's development plans.

At the same time, Saudi Arabia has previously stated that it would consider matching Iran if Tehran were ever to acquire a nuclear weapon, comments that have contributed to international concerns about the future direction of the region's nuclear programmes.

Strategic benefits for Washington

For the United States, the agreement offers both commercial and geopolitical advantages.

A formal cooperation framework could position American companies to compete for lucrative contracts linked to Saudi Arabia's planned nuclear infrastructure. It also provides Washington with greater visibility into the development of the kingdom's civilian nuclear programme.

The agreement comes amid growing international competition for Saudi Arabia's nuclear business. China, Russia, France and South Korea have all been viewed as potential partners for the kingdom's atomic energy ambitions.

The proposed arrangement is still expected to face congressional review under U.S. law, where lawmakers are likely to focus on safeguards, uranium enrichment provisions and broader non-proliferation commitments.

Questions also remain about whether future cooperation could eventually extend to more sensitive areas of the nuclear fuel cycle, including uranium enrichment, an issue that has remained at the center of discussions between Washington and Riyadh.

Tags

News Politics Trump USA Iran Saudi Arabia nuclear power