US approves Saudi nuclear deal: What it allows and why it matters

The proposed agreement, estimated to be worth tens of billions of dollars, is expected to run for 30 years and place American companies at the centre of Saudi's civil nuclear infrastructure programme.

The US government on Tuesday approved a civil nuclear agreement with Saudi Arabia that could eventually allow the kingdom to enrich uranium domestically, according to multiple US media reports.

 

Although no official announcement has been made yet, the agreement is expected to be unveiled in the coming days before being sent to the US Congress for review.

 

The proposed agreement, estimated to be worth tens of billions of dollars, is expected to run for 30 years and place American companies at the centre of Saudi Arabia's civil nuclear infrastructure programme. But what exactly does the agreement allow, and why has the uranium enrichment provision attracted global attention?

 

What does the agreement allow?

 

The proposed agreement establishes the legal framework for civil nuclear cooperation under Section 123 of the US Atomic Energy Act. Such agreements are a prerequisite for the US government and American companies to engage in significant nuclear cooperation with another country. If it comes into effect, it would enable US firms to participate in the development of Saudi Arabia's civilian nuclear programme.

 

The agreement creates a legal pathway for cooperation across the nuclear fuel cycle, including uranium enrichment. The agreement could allow the construction of a uranium enrichment facility in the kingdom following a joint US-Saudi study, reported the Associated Press.

 

While the proposed pact is expected to remain in force for 30 years, it has reportedly been designed in a way to make US firms the preferred partners for projects in Saudi Arabia, limiting the role of foreign competitors.

 

The agreement also envisions continued American oversight of the programme. According to reports, the US would retain a monitoring role over Saudi Arabia's civilian nuclear activities, with Trump administration officials arguing that sustained US involvement would help prevent civilian nuclear facilities from being diverted for weapons-related purposes.

 

Why has the uranium enrichment provision raised concerns?

 

Saudi Arabia has pursued nuclear power as part of its broader strategy to diversify an electricity system that remains heavily reliant on fossil fuels. The kingdom, however, has yet to operate its first nuclear power reactor.

 

As part of the proposed agreement with the US, the uranium enrichment provision has drawn particular attention because enrichment is a dual-use technology with both civilian and military applications. While low-enriched uranium is used as fuel for nuclear power reactors, the same process can also produce weapons-grade material if uranium is enriched to much higher levels.  According to the Arms Control Centre, most civilian nuclear reactors use uranium enriched to 3-5 per cent uranium-235 (U-235), while uranium enriched above 20 per cent is classified as highly enriched uranium and around 90 per cent is considered weapons-grade.

 

According to Reuters, the proposed agreement does not include two key safeguards that many US lawmakers wanted. These include:

 

1. a prohibition on domestic uranium enrichment and spent-fuel reprocessing—known as the "gold standard" in US civil nuclear agreements

2. the International Atomic Energy Agency's (IAEA) Additional Protocol, which gives the UN nuclear watchdog wider access to information and locations, including the ability to inspect undeclared sites

 

These omissions have drawn concerns because Saudi Arabia has long expressed ambitions to develop the full nuclear fuel cycle. In January 2025, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said the kingdom planned to produce yellowcake, enrich uranium and eventually sell it. Crown Prince Mohammed bin Salman has also previously said Saudi Arabia would seek a nuclear weapon if Iran acquired one, adding to concerns about the long-term implications of permitting domestic uranium enrichment.