Saudi Arabia secures civilian nuclear deal with US, reshaping global energy and uranium markets
The 30-year 123 Agreement opens the door to uranium enrichment on Saudi soil, a first for US nuclear diplomacy in the Gulf region.
Saudi Arabia and the United States have finalized a 123 Agreement establishing civilian nuclear cooperation, a deal signed by US Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman. The 30-year framework paves the way for American nuclear technology, materials, and expertise to flow into the kingdom, and it includes a provision that previous Gulf deals explicitly prohibited: the potential for uranium enrichment on Saudi soil.
What the deal actually includes
The agreement, finalized around July 22-23, 2026, revives negotiations that resumed in 2025 and builds on a Joint Declaration reached in November of that year. In practical terms, it creates a multi-billion-dollar partnership that gives US companies preferred access to develop Saudi nuclear infrastructure.
The deal permits Saudi Arabia to conduct a two-year viability study on domestic uranium enrichment. If that study concludes enrichment is commercially viable, the kingdom could potentially operate enrichment facilities, possibly using US-led “black box” technologies designed to limit proliferation risk.
The framework also incorporates a bilateral safeguards agreement meant to ensure compliance with nonproliferation norms. US lawmakers have already voiced concerns about whether those safeguards are robust enough. The Saudi agreement represents a meaningful departure from the 2009 US-UAE agreement, which required the UAE to forgo any domestic enrichment or reprocessing capabilities.
Why Saudi Arabia wants nuclear power
Saudi Arabia sits on some of the world’s largest oil reserves, but rising domestic electricity demand, driven by population growth and ambitious development projects under Saudi Vision 2030, means the kingdom needs alternative energy sources to free up more crude for export. Saudi Arabia also possesses uranium reserves that could position it as a player in the nuclear fuel cycle.
Iran’s nuclear program has been a source of regional tension for decades. Saudi Arabia securing its own civilian nuclear capabilities, with American backing, shifts the power dynamics in the Middle East.