Saudi-US relations have entered a new phase of strategic cooperation with the signing of a peaceful nuclear energy agreement, known as a 123 Agreement, and a bilateral safeguards accord. Together, the agreements establish the legal foundation for a partnership expected to last decades, as Saudi Arabia seeks to diversify its energy mix and strengthen energy security under the highest standards of nuclear safety and security. Prince Abdulaziz bin Salman, Saudi minister of energy and minister of industry and mineral resources, signed the agreements with US Energy Secretary Chris Wright. The signing follows an announcement made during Saudi Crown Prince and Prime Minister Mohammed bin Salman’s visit to the United States in November that negotiations on peaceful nuclear cooperation had been completed. Saudi Arabia’s Energy Ministry said the deal would deepen bilateral cooperation and support the exchange of expertise, knowledge and technology, helping advance the peaceful use of nuclear energy in line with the highest international standards on nuclear safety, security and non-proliferation. The agreement builds on long-standing energy ties between the two countries and reflects a shared ambition to expand cooperation in energy, future technologies and sustainable development. The US Energy Department said the deal creates the legal framework for a decades-long partnership worth billions of dollars and would help meet Saudi Arabia’s energy needs. It said the agreement would advance the two countries’ shared interests by expanding cooperation in civilian nuclear technology and strengthening their strategic partnership. Wright praised Prince Abdulaziz as one of the leading thinkers in global energy markets, describing him as an independent-minded figure whose positions are shaped by what he believes is right rather than by political pressure. He said their relationship had grown from professional admiration into friendship and mutual trust. Wright also credited Prince Abdulaziz’s principled leadership with helping build a Saudi energy system defined by efficiency and innovation. He praised the prince’s role in empowering women in the energy sector, saying the Energy Ministry’s achievements reflected strong leadership that combined determination, generosity and teamwork. Years in the making The agreement is not simply the product of recent negotiations. Civilian nuclear talks between Saudi Arabia and the United States date back to 2008, when the two countries signed a memorandum of understanding on cooperation in peaceful nuclear energy. Consultations continued in the years that followed. Between 2017 and 2019, Saudi Arabia held talks with US companies interested in taking part in its nuclear program. In November 2025, the two countries signed a joint declaration to complete the cooperation framework, paving the way for the 123 Agreement and the bilateral safeguards accord that now establish the legal basis for civilian nuclear cooperation. Wright had discussed the issue in an exclusive interview with Asharq Al-Awsat during a visit to Saudi Arabia in 2025. Prince Abdulaziz had also said the kingdom was moving toward the use of nuclear energy and radiation applications for peaceful purposes. He said Saudi Arabia was continuing to implement all components of its national nuclear energy project, including plans to build the country’s first nuclear power plant. The latest agreement reinforces the path Saudi Arabia has set out in recent years to develop a peaceful nuclear program. Addressing the 69th General Conference of the International Atomic Energy Agency in Vienna in 2025, Prince Abdulaziz said the project to build the kingdom’s first nuclear power plant, in cooperation with the agency, would help diversify the energy mix, expand clean energy supplies and support sustainable development. He said Saudi Arabia aimed to become a model for the peaceful use of nuclear energy under the highest standards of nuclear safety and security. What is a 123 Agreement? The agreement is named after Section 123 of the US Atomic Energy Act, which governs civilian nuclear cooperation between the United States and other countries. Washington does not allow the export of nuclear reactors, fuel or technology to countries that have not signed this type of agreement. A 123 Agreement sets the legal terms of cooperation, establishes oversight mechanisms and lays out requirements to ensure that nuclear materials and technology are used only for peaceful purposes. Under the agreement, US companies would be able to help design, build and operate Saudi nuclear reactors. They could also supply equipment, fuel and technical services. All activities would be subject to nuclear non-proliferation commitments, IAEA safeguards and the bilateral safeguards agreement signed by the two countries. Economic and strategic weight The deal marks a major step in the transformation of Saudi Arabia’s energy sector. It supports efforts to diversify the kingdom’s energy mix and strengthen security of supply by adding peaceful nuclear power alongside natural gas and renewable energy. Nuclear energy could support electricity generation and water desalination while reducing domestic dependence on oil and gas. That, in turn, could free up more hydrocarbons for export, increase revenue, improve the use of natural resources and support sustainable long-term growth. The agreement also supports the goals of Saudi Arabia’s Vision 2030 economic transformation plan, including diversifying energy sources and reducing carbon emissions as demand for electricity and water continues to rise. It would also strengthen supply security by providing a stable source of electricity that is less exposed to fuel market swings. On the industrial front, the agreement opens the door for US companies to take part in developing Saudi Arabia’s nuclear infrastructure. That could include reactor design, construction and operation, as well as the development of supply chains. The agreement could also support the transfer of advanced technology and expertise, increase local content, train Saudi professionals and strengthen research and development. Together, those steps could help establish a sustainable Saudi nuclear industry. The nuclear fuel cycle The agreement carries added significance because of its connection to the future of Saudi Arabia’s nuclear fuel cycle. The kingdom is seeking to develop its uranium resources and build a domestic nuclear value chain. Saudi Arabia has announced plans to produce yellowcake, an early stage in the nuclear fuel cycle, as part of efforts to generate economic value from its uranium resources and establish an integrated peaceful nuclear sector. Prince Abdulaziz has said the kingdom aims to develop the full nuclear fuel cycle for peaceful purposes. That includes using domestic uranium deposits under international safeguards and obligations. A program built over two decades The agreement with the United States does not mark the beginning of Saudi Arabia’s nuclear program. It is the culmination of more than two decades of planning, institution-building and regulatory development. Saudi interest in nuclear energy dates to 2006, when Gulf Cooperation Council states commissioned a joint study on peaceful nuclear applications. In 2007, Saudi Arabia, working with the IAEA, led feasibility studies for the proposed regional project. King Abdullah City for Atomic and Renewable Energy was established in 2010 to lead the development of the nuclear program, establish regulatory frameworks and oversee international agreements. Technical studies later examined potential reactor sites in Jubail, Tabuk and Jizan. With the launch of the National Atomic Energy Project between 2017 and 2023, Saudi Arabia moved into a more advanced phase. The program focused on large nuclear reactors, small modular reactors, the nuclear fuel cycle, and a regulatory and oversight system. In 2018, the Saudi Cabinet approved the National Policy for the Atomic Energy Program. The policy states that all nuclear activities in the kingdom are dedicated to peaceful purposes. It also stresses transparency, nuclear safety, independent regulation, local-content development and the building of national capabilities. As part of efforts to strengthen compliance with international standards, Saudi Arabia announced in 2023 that it would move to implement a comprehensive safeguards agreement with the IAEA following the termination of the Small Quantities Protocol. The decision took effect at the end of 2024. What comes next? The agreement goes far beyond cooperation on building nuclear power plants. It lays the groundwork for a long-term partnership in advanced technology and gives Saudi Arabia new tools to strengthen energy security, diversify its economy and develop high-tech industries. It could also help build a new generation of specialized Saudi professionals and reinforce the kingdom’s position as a major regional center for energy and advanced industry. More broadly, the agreement places the peaceful nuclear program firmly within the economic transformation being driven by Vision 2030.
