Updated January 23, 2023
Prospects for U.S.-Saudi Nuclear Energy Cooperation
Overview
According to Saudi officials, the kingdom intends to
The 118th Congress may engage the Biden Administration
develop the capacity to produce nuclear fuel using domestic
with regard to U.S. policy toward Saudi Arabia’s National
resources. In 2019, Saudi Energy Minister Prince Abd al
Project for Atomic Energy and the potential for future U.S.-
Aziz bin Salman Al Saud said, “even if we scale up [nuclear
Saudi nuclear energy cooperation. In May 2022, Saudi
power] ... we want to go to the full cycle, to producing the
Arabia invited technical bids related to the planned
uranium, enriching the uranium.” The minister further stated
construction of two nuclear reactors, and, in January 2023, a
in January 2023 that Saudi Arabia intends to use its
Saudi minister restated the kingdom’s intention to use its
substantial domestic uranium resources for producing LEU.
domestic uranium resources for producing low-enriched
Saudi Arabia is a state party to the nuclear Nonproliferation
uranium (LEU) as nuclear fuel.
Treaty (NPT), which requires the government to accept
Congress and successive Administrations have sought the
International Atomic Energy Agency (IAEA) safeguards on
kingdom’s commitment to forgo the most proliferation-
any nuclear facilities. IAEA safeguards present a significant
sensitive nuclear facilities—those for enriching uranium or
hurdle to the development of nuclear weapons. Saudi Arabia
reprocessing spent nuclear fuel to obtain plutonium—and
has not concluded an additional protocol to its IAEA
Saudi Arabia’s acceptance of enhanced international
comprehensive safeguards agreement. Such a protocol
safeguards on its nuclear program. Previous Administrations would increase the IAEA’s ability to investigate undeclared
linked prospects for a U.S.-Saudi nuclear cooperation
nuclear facilities and activities by increasing the IAEA’s
agreement to these conditions, and Congress has limited the
authority to inspect certain nuclear-related facilities and
use of certain funds to support possible U.S. nuclear exports
demand information. Other international mechanisms are
to Saudi Arabia unless the kingdom makes such
designed to restrict the spread of sensitive nuclear
commitments. Depending on its nature and extent, possible
technology, including enrichment technology.
future U.S.-Saudi nuclear cooperation may require
In 2020, Saudi authorities denied press reports citing
Department of Energy (DOE) authorizations and/or
unnamed Western officials claiming that Saudi Arabia, with
congressional approval of U.S.-Saudi agreements.
China’s help, built a facility for milling uranium oxide ore.
Saudi Nuclear Plans and Policy
Saudi Arabia’s IAEA safeguards agreement requires the
government to declare such a facility to the agency. Other
In July 2017, Saudi Arabia approved a National Project for
press reports discussed another possible undeclared site.
Atomic Energy, including plans to build large and small
nuclear reactors for electricity production and water
Saudi state policy maintains that the kingdom’s nuclear
desalination. The project is part of a broader Saudi
energy pursuits are limited to peaceful purposes, but
government effort to diversify the kingdom’s economy and
senior officials, including Crown Prince Mohammed bin
expand the use of non-fossil fuel-based energy. Saudi
Salman bin Abd al Aziz Al Saud, also have stated that if
Arabia holds 16% of the world’s proven reserves of crude
Iran were to pursue or obtain a nuclear weapon, the
oil, has the world’s fourth-largest reserves of natural gas,
kingdom will follow suit.
and consumes the second most energy in the Middle East.
Oil and natural gas generate roughly 39% and 60% of the
kingdom’s electricity, respectively.
Threats to the security of critical Saudi infrastructure may
raise concerns about the security of Saudi nuclear facilities.
Saudi authorities have worked to develop required legal and
The U.S. government notes security threats in Saudi Arabia
regulatory frameworks with the support of the IAEA.
from terrorist groups and hostile regional actors, including
Agency officials completed a nuclear infrastructure review
missile and rocket attacks on Saudi energy infrastructure and
in Saudi Arabia in 2018 and issued a final report in January
government facilities that U.S. officials attribute to Iran or
2019. The kingdom established a Nuclear and Radiological
Iran-backed groups. Ongoing U.S.-Saudi security
Regulatory Commission in March 2018, and, in March
cooperation seeks to mitigate these threats and others.
2022, created the Saudi Nuclear Energy Holding Company
(SNEHC) to develop and operate planned nuclear facilities.
U.S.-Saudi Nuclear Cooperation
In 2017, the Saudi government solicited marketing
In 2008, the United States and Saudi Arabia signed a
information from potential international partner companies
Memorandum of Understanding (MOU) stating bilateral
for reactor construction, but did not meet its original
intent to cooperate on nuclear activities in the fields of
timeline for initiating a formal bidding process. In May
medicine, industry, and electricity production. The
2022, Saudi officials invited technical bids from companies
nonbinding MOU stated Saudi Arabia’s intent “to rely on
in Russia, China, and South Korea related to the planned
existing international markets for nuclear fuel services as an
construction of two 1.4 giga-watt electric (GWe) reactors at
alternative to the pursuit of enrichment and reprocessing.”
Khor Duweihin, a coastal area between the kingdom’s
borders with Qatar and the United Arab Emirates (UAE).
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Prospects for U.S.-Saudi Nuclear Energy Cooperation
The Obama and Trump Administrations engaged the
Section 57(b)(2) of the AEA allows for limited cooperation
kingdom on the prospects for reaching a bilateral civil
related to the “development or production of any special
nuclear energy agreement, including through formal
nuclear material outside of the United States.” A 123
negotiations over the text of a proposed “123 agreement”
agreement is not necessary for such cooperation, which
(see below) in 2012 and 2018. The Government
mostly involves transfers of unclassified nuclear technology
Accountability Office (GAO) reported in 2020 that the
and services pursuant to “Part 810 authorizations.” Such
governments had “not made significant progress toward a
authorizations are not subject to congressional review.
nuclear cooperation agreement because of persistent
Section 123 agreements do not require recipient
differences... over nonproliferation conditions, including
governments to forgo enrichment or reprocessing. Still,
U.S. insistence that Saudi Arabia conclude an Additional
some 123 agreements contain provisions designed to
Protocol with the IAEA and that Saudi Arabia agree to
restrictions on enrichment and reprocessing.”
discourage enrichment and reprocessing programs in the

Middle East. The 2009 U.S.-UAE 123 agreement provides
From 2017 to 2019, DOE granted seven “Part 810”
the United States the right to terminate nuclear cooperation
authorizations (per 10 C.F.R. 810) for U.S. companies to
with that country if the UAE “possesses sensitive nuclear
engage in discussions, including marketing, with Saudi
facilities within its territory or otherwise engages in
Arabia regarding its civil nuclear program in response to the
activities within its territory relating to enrichment of
kingdom’s 2017 request for marketing information.
uranium or reprocessing of nuclear fuel.” An Agreed Minute
to that agreement states that its terms “shall be no less
The State Department said in an August 2020 press
statement that the United States would “attach great
favorable in scope and effect than those which may be
accorded” to other cou
importance” to continued Saudi compliance with the NPT
ntries in the Middle East. The minute
also explains that, if the U.S. government concludes a more-
and would seek an agreement “with strong nonproliferation
favorable 123 agreement with another regional government,
protections that will enable Saudi and U.S. nuclear
the United States will, at the UAE’s request, consult with the
industries to cooperate.”
government “regarding the possibility of amending” the 123
In September 2022, U.S. and Saudi officials signed an MOU agreement with equally favorable terms.
for the exchange of technical information and cooperation in Foreign entities’ nuclear exports to Saudi Arabia containing
nuclear safety matters.
U.S.-origin technology might require U.S. consent.
Both highly enriched uranium and plutonium can be
Congress and U.S. Policy
used as fuel in some types of nuclear reactors but also
As the kingdom considers its options for nuclear energy
are used as fissile material in nuclear weapons.
partnership, the 118th Congress could consider whether or
Consequently, ostensibly peaceful enrichment and
not to take steps to limit proliferation risks, promote nuclear
reprocessing facilities frequently generate concern that
safety, or advance U.S. commercial interests in this context.
a government’s facilities may aid nuclear weapons
Since FY2020, Congress annually has prohibited the use of
programs. Conversely, a nuclear program without such
appropriated funds for Export-Import Bank support for
facilities generally poses little proliferation risk, but
nuclear exports to Saudi Arabia until the kingdom has a 123
may pose security and/or environmental risks.
agreement “in effect”; “has committed to renounce uranium
enrichment and reprocessing on its territory under that
U.S. Nuclear Cooperation Requirements
agreement”; and has “signed and implemented” an
Section 123 of the Atomic Energy Act of 1954, as amended
Additional Protocol with the IAEA [most recently for
(AEA, 22 U.S.C. 2011 et seq.), requires nuclear cooperation
FY2023 in Section 7041(i), Division K, P.L. 117-328].
agreements for significant nuclear cooperation with foreign
In the 117th Congress, Members introduced bills that would
governments. Such cooperation includes the transfer of
have prohibited certain U.S. defense sales to Saudi Arabia if
certain U.S.-origin nuclear material subject to licensing for
the kingdom knowingly imports enrichment or reprocessing
commercial, medical, and industrial purposes; the export of
technologies in the absence of certain nonproliferation
reactors and critical reactor components; and other
commitments (S. 1146/H.R. 2506). Since 2018, some
commodities under Nuclear Regulatory Commission export
Members have introduced bills that would have required a
licensing authority.
congressional joint resolution of approval before a 123
So-called “123 agreements,” must include the terms,
agreement with Saudi Arabia could take effect [H.R.
conditions, duration, nature, and scope of cooperation, as
7350/S. 3785 (115th Congress) and H.R. 1471/S. 612 (116th
well as meet several nonproliferation criteria. The President
Congress]. In 2020, the House Permanent Select Committee
must make a written determination “that the performance of
on Intelligence reported a bill with a provision that would
the proposed agreement will promote, and will not constitute have required the intelligence community to report to
an unreasonable risk to, the common defense and security.”
Congress on Saudi nuclear activities (Section 805 of H.R.
The AEA requires Congress to review a 123 agreement for
7856, 116th Congress).
two time periods totaling 90 days of continuous session. If
the President has not exempted the agreement from any
Christopher M. Blanchard, Specialist in Middle Eastern
requirements of Section 123(a), it becomes effective at the
Affairs
end of the second period, unless, during that time, Congress
Paul K. Kerr, Specialist in Nonproliferation
adopts a joint resolution disapproving the agreement and the
IF10799
resolution becomes law.
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Prospects for U.S.-Saudi Nuclear Energy Cooperation


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https://crsreports.congress.gov | IF10799 · VERSION 13 · UPDATED

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