U.S. And Saudi Arabia Sign 30-Year Multibillion-Dollar Civil Nuclear Agreement

By Amit Chowdhry ● Today at 12:47 PM

The United States and Saudi Arabia have signed a 30-year civil nuclear cooperation agreement that would give American companies a central role in developing the kingdom’s nuclear energy program, according to The WSJ.

President Donald Trump approved the agreement before U.S. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman signed it on July 22, 2026. The arrangement is expected to support projects worth tens of billions of dollars.

The agreement consists of a peaceful nuclear cooperation framework, commonly known as a Section 123 agreement, and a separate bilateral safeguards document. Together, they establish the legal foundation for transferring American nuclear reactors, technology, materials and services to Saudi Arabia.

American companies would receive a leading role in building Saudi nuclear infrastructure, limiting opportunities for competing suppliers from countries such as China and Russia. Westinghouse Electric and its AP1000 reactor technology could be among the principal commercial beneficiaries.

Saudi Arabia wants nuclear power to meet rising domestic electricity demand and diversify its energy system. Generating more electricity from nuclear plants could also allow the kingdom to use less oil domestically and make more of its production available for export.

A major provision establishes a two-year U.S.-Saudi study examining whether uranium enrichment inside Saudi Arabia would be commercially and technically justified. Uranium enrichment produces fuel for civilian reactors, but more advanced enrichment can also create material usable in nuclear weapons.

If the study supports domestic enrichment, American companies could build an enrichment facility in Saudi Arabia under a controlled “black box” structure. The arrangement would be designed to prevent the transfer of sensitive enrichment technology to Saudi authorities and keep the facility under American oversight.

If the United States opposes an enrichment facility after the study, Saudi Arabia would be prohibited from developing one independently or working with another foreign partner for 10 years.

The agreement does not require Saudi Arabia to permanently renounce uranium enrichment or the reprocessing of spent nuclear fuel. Riyadh has rejected the so-called gold standard adopted by the United Arab Emirates, under which a country agrees not to pursue either capability.

Saudi Arabia also declined to adopt the International Atomic Energy Agency’s Additional Protocol, which would give international inspectors expanded access to nuclear information and suspected sites. U.S. officials maintain that the bilateral safeguards agreement will provide adequate oversight of facilities involving American technology.

Critics argue that the safeguards may be insufficient to investigate nuclear activities conducted outside the U.S.-supported program. They also warn that Saudi enrichment capabilities could encourage countries including Turkey, Egypt and the United Arab Emirates to pursue broader nuclear programs.

Concerns have been heightened by Crown Prince Mohammed bin Salman’s previous statement that Saudi Arabia would seek a nuclear weapon if Iran developed one. Saudi officials continue to maintain that the kingdom’s planned program is intended for peaceful energy production.

Unlike an earlier proposal considered by the Biden administration, the agreement does not require Saudi Arabia to establish diplomatic relations with Israel before receiving American nuclear technology.

The agreement will now be transmitted to Congress for review. Section 123 agreements generally undergo 90 days of congressional consideration and can take effect unless lawmakers pass a joint resolution opposing them that becomes law.

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