The United States and Saudi Arabia have signed a landmark nuclear cooperation agreement, officially known as a “123 agreement,” and a bilateral safeguards agreement, the Energy Department announced Wednesday. This 30-year deal is designed to provide U.S. companies with significant access to Saudi Arabia’s burgeoning nuclear energy program, a move the department asserts will benefit American industry, workers, and supply chains while addressing the Kingdom's energy needs.
While the full details are expected to be shared with Congress soon, key provisions reported suggest U.S. companies will be central to developing Saudi Arabia’s nuclear infrastructure. A significant aspect of the agreement includes the potential for a uranium enrichment facility. This facility could be developed if a two-year joint U.S.-Saudi study concludes that enrichment in Saudi Arabia is both warranted and commercially viable. Should the U.S. ultimately reject independent or partner-led enrichment after this study, Saudi Arabia would be prohibited from independently enriching uranium or doing so with another foreign partner for a decade, according to The Wall Street Journal.
The agreement has drawn criticism from some quarters, with concerns raised about its potential to accelerate an arms race within the Middle East.