Updated February 2, 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
requirements of Section 123(a), it becomes effective at the
kingdom on the prospects for reaching a bilateral civil
end of the second period, unless, during that time, Congress
nuclear energy agreement, including through formal
adopts a joint resolution disapproving the agreement and the
negotiations over the text of a proposed “123 agreement”
resolution becomes law. Section 57(b)(2) of the AEA allows
(see below) in 2012 and 2018. The Government
for limited cooperation related to the “development or
Accountability Office (GAO) reported in 2020 that the
production of any special nuclear material outside of the
governments had “not made significant progress toward a
United States.” A 123 agreement is not necessary for such
nuclear cooperation agreement because of persistent
cooperation, which mostly involves transfers of unclassified
differences ... over nonproliferation conditions, including
nuclear technology and services pursuant to “Part 810
U.S. insistence that Saudi Arabia conclude an Additional
authorizations.” Such authorizations are not subject to
Protocol with the IAEA and that Saudi Arabia agree to
congressional review.
restrictions on enrichment and reprocessing.” The State
Section 123 agreements do not require recipient
Department said in August 2020 that the United States
would “attach great importance” to continued Saudi
governments to forgo enrichment or reprocessing. Still,
some 123 agreements contain provisions designed to
compliance with the NPT and would seek an agreement
“with strong nonproliferation protections that will enable
discourage enrichment and reprocessing programs in the
Saudi and U.S. nuclear industries to cooperate.”
Middle East. The 2009 U.S.-UAE 123 agreement provides

the United States the right to terminate nuclear cooperation
According to a February 2023 State Department email, the
with that country if the UAE “possesses sensitive nuclear
Biden Administration is “not in a position to characterize the facilities within its territory or otherwise engages in
status or substance” of such bilateral discussions, and
activities within its territory relating to enrichment of
“remains committed” to the longstanding U.S. objective “to
uranium or reprocessing of nuclear fuel.” An Agreed Minute
limit the spread of uranium enrichment and spent fuel
to that agreement states that its terms “shall be no less
reprocessing technologies globally, given their potential
favorable in scope and effect than those which may be
technical applicability to fissile material production.”
accorded” to other countries in the Middle East. The minute
also explains that, if the U.S. government concludes a more-
From 2017 to 2019, DOE granted seven “Part 810”
favorable 123 agreement with another regional government,
authorizations (per 10 C.F.R. 810) for U.S. companies to
the United States will, at the UAE’s request, consult with the
engage in civil nuclear discussions, including marketing,
with Saudi Arabia in response to the kingdom’s 2017
government “regarding the possibility of amending” the 123
agreement with equally favorable terms.
request for marketing information. In 2022, U.S. and Saudi
officials signed an MOU on the exchange of technical
Foreign entities’ nuclear exports to Saudi Arabia containing
information and cooperation in nuclear safety matters.
U.S.-origin technology might require U.S. consent.
Congress and U.S. Policy
Both highly enriched uranium and plutonium can be
As the kingdom considers its options for nuclear energy
used as fuel in some types of nuclear reactors but also
partnership, the 118th Congress could consider whether or
are used as fissile material in nuclear weapons.
not to take steps to limit proliferation risks, promote nuclear
Consequently, ostensibly peaceful enrichment and
safety, or advance U.S. commercial interests in this context.
reprocessing facilities frequently generate concern that
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
Additional Protocol with the IAEA [most recently for
Section 123 of the Atomic Energy Act of 1954, as amended
FY2023 in Section 7041(i), Division K, P.L. 117-328].
(AEA, 22 U.S.C. 2011 et seq.), requires nuclear cooperation
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. Since 2018, some Members have introduced
commodities under Nuclear Regulatory Commission export
bills that would have required a congressional joint
licensing authority.
resolution of approval before a 123 agreement with Saudi
Arabia could take effect. In 2020, the House Permanent
So-called “123 agreements,” must include the terms,
Select Committee on Intelligence reported a bill with a
conditions, duration, nature, and scope of cooperation, as
provision that would have required the intelligence
well as meet several nonproliferation criteria. The President
community to report to Congress on Saudi nuclear activities.
must make a written determination “that the performance of
the proposed agreement will promote, and will not constitute Christopher M. Blanchard, Specialist in Middle Eastern
an unreasonable risk to, the common defense and security.”
Affairs
The AEA requires Congress to review a 123 agreement for
Paul K. Kerr, Specialist in Nonproliferation
two time periods totaling 90 days of continuous session. If
the President has not exempted the agreement from any
IF10799
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Prospects for U.S.-Saudi Nuclear Energy Cooperation


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https://crsreports.congress.gov | IF10799 · VERSION 15 · UPDATED

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