US Companies to Support Saudi Civilian Nuclear Programme for 30 Years
The government could avoid global market pressure when selling bonds.
The administration of US President Donald Trump is reportedly about to announce a major agreement that would allow Saudi Arabia to develop a civil nuclear programme. According to US media reports citing several officials, the official announcement is expected on Wednesday (22 July) local time.
The deal is predicted to be worth billions of dollars to the United States. American companies are highly likely to be involved in building enriched uranium production facilities. Although the uranium is intended as fuel for power plants, the technology also has the potential to be developed into nuclear weapons.
The plan has triggered a strong reaction from nuclear experts and former officials in Israel, the US’s principal ally in the Middle East. They have voiced concerns that the agreement could ultimately pave the way for Saudi Arabia to acquire nuclear weapons of its own.
Beyond Israel, global nuclear non-proliferation activists have expressed similar concerns. Their principal focus is preventing an increase in the number of states with access to nuclear weapons worldwide.
According to media reports, the terms of the agreement would allow Saudi Arabia to enrich uranium on its own soil after a joint study with the United States. This differs from the 2009 agreement between the US and the United Arab Emirates, under which the Emirates were prohibited from producing their own fuel and had to accept various strict limitations.
The Wall Street Journal reported that the agreement has been approved by President Trump and will run for 30 years. If, after the joint study, the US objects to enrichment activities in Saudi Arabia, the kingdom is barred from carrying them out independently or with other foreign partners for 10 years.
The nuclear issue has emerged amid the prolonged conflict between the US-Israel alliance and Iran. In 2018, Saudi Crown Prince Mohammed bin Salman told CBS News that his country had no plans to acquire nuclear weapons, but stressed: “Without a doubt, if Iran developed a nuclear bomb, we would follow suit as soon as possible.”
Interestingly, a New York Times report stated that the nuclear agreement is not being made a condition for Saudi Arabia to normalise diplomatic relations with Israel, despite such normalisation having long been an aspiration of previous US presidents.
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