U.S. and Saudi Arabia Sign Nuclear Deal, Raising Fears of Middle East Arms Race

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TLDR

  • The U.S. and Saudi Arabia signed a civil nuclear agreement allowing the kingdom to enrich uranium and build reactors using American technology
  • The deal does not require Saudi Arabia to allow snap UN inspections, unlike what was demanded of Iran
  • Israeli officials and former leaders warned the deal could trigger a nuclear arms race in the Middle East
  • The agreement now goes to Congress, which has 90 session days to object before it takes effect
  • The deal is worth tens of billions of dollars and would benefit Westinghouse, co-owned by Cameco and Brookfield Asset Management

The United States and Saudi Arabia have signed a civil nuclear agreement that allows the kingdom to enrich uranium and build nuclear reactors using American technology. The deal, known as a 123 Agreement, was signed by U.S. Secretary of Energy Chris Wright and Saudi Prince Abdulaziz bin Salman.

The agreement still needs to clear Congress. Unless lawmakers vote to block it within 90 session days, it will go into force. A two-thirds majority would be needed to override a presidential veto.

A civil nuclear deal with Saudi Arabia has been discussed for years, under both the Trump and Biden administrations. Previous efforts stalled partly due to warnings from nonproliferation groups about the risks involved.

No Snap Inspections Required

Unlike the deal proposed under President Biden, this agreement does not require Saudi Arabia to sign the Additional Protocol. That protocol allows the International Atomic Energy Agency to carry out snap inspections at undeclared nuclear sites.

Saudi Arabia currently operates under standard IAEA safeguards, which only cover declared facilities. The new deal would let the kingdom enrich uranium and reprocess nuclear waste, both of which can be steps toward building a weapon.

By comparison, the UAE agreed to give up enrichment and reprocessing when it signed a similar deal with the U.S. in 2009.


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Crown Prince Mohammed bin Salman has said publicly that Saudi Arabia would pursue nuclear weapons if rival Iran does.

Israeli Officials Raise Alarm

The deal has drawn sharp criticism from Israeli political figures. Former Prime Minister Naftali Bennett called it “a serious strategic failure that endangers our security.” He warned that uranium enrichment on Saudi soil could spark a regional nuclear race.

Former Defence Minister Avigdor Lieberman said the civilian program would “end in nuclear weapons” and trigger an arms race across the Middle East. He called on Israel to lobby Congress to reject the deal.

Former defence chief Benny Gantz said no security official would support introducing civilian nuclear capability into Saudi Arabia without it being part of a broader regional alliance-building effort.

Prime Minister Benjamin Netanyahu and his defence and foreign ministers have not yet commented publicly.

Financial Stakes

The deal covers about 30 years and the construction of AP1000 reactors. It is worth tens of billions of dollars and would be a major win for Westinghouse, which is jointly owned by Canadian uranium company Cameco and Brookfield Asset Management.

An industry source noted the deal still requires a feasibility study. Given the slow pace of nuclear construction, it could take many years before any infrastructure is built.

The deal was presented partly as a way to keep Saudi Arabia from turning to China or Russia, both of which have different nonproliferation standards.

Some U.S. lawmakers from both parties have expressed concern. Senator Edward Markey said the deal would “make us all less safe.” Senator Jim Risch said the agreement would benefit both countries.

Nonproliferation experts have urged Congress to reject or modify the deal to prevent further nuclear proliferation in the Middle East.


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