The agreement is expected to benefit U.S. companies and reduce Russian and Chinese influence in Saudi Arabia’s civilian nuclear sector.
WASHINGTON—The United States and Saudi Arabia signed an agreement on July 22 that will allow the Gulf kingdom to develop a civilian nuclear program on its soil, the U.S. Department of Energy said in a statement.
The agreement may also allow for uranium enrichment in Saudi Arabia.
The 123 Agreement, named after Section 123 of the U.S. Atomic Energy Act, was signed by U.S. Secretary of Energy Chris Wright and his Saudi counterpart, Prince Abdulaziz bin Salman. Both sides also signed a bilateral safeguards agreement.
“Together, these two agreements lay the legal foundation for a decades-long, multi-billion-dollar partnership that advances several priority economic and strategic objectives, including nuclear nonproliferation,” the statement reads.
The 30-year agreement will give American companies a key role in developing Saudi Arabia’s nuclear infrastructure.
The deal was first reported by The Wall Street Journal.
A key provision allows U.S. companies to build a uranium enrichment facility in Saudi Arabia if a joint U.S.–Saudi study finds it necessary. The provision would give the United States influence over the Saudi nuclear program and help prevent its misuse for military purposes.
A few countries dominate the global nuclear energy market by exporting reactor technology, constructing nuclear power plants abroad, and funding these projects. Russia and China are among the top players.
The agreement is expected to strengthen the U.S. nuclear industry and limit the strategic influence Russia and China could gain in Saudi Arabia’s civilian nuclear sector.
“These agreements reflect our two nations’ shared commitment to strengthening U.S.-Saudi commercial relations, delivering prosperity at home and security to our allies abroad,” Wright said in a statement.
“Rest assured, these agreements uphold the highest standards of nuclear safety and nonproliferation, while relying on the world’s best nuclear technology and scientists, designed right here in the United States. Thanks to President [Donald] Trump, the American nuclear renaissance is underway and will deliver long-term benefits to the American and Saudi people.”
Wright previously discussed the agreement during his first overseas trip to the region in April 2025.
The agreement will be sent to Congress for review.
By Emel Akan
