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World Bank’s nuclear U-turn is an opportunity for Middle East projects

13 June 2025

Commentary
Colin Foreman
Editor

The World Bank’s decision to end its 65-year ban on financing nuclear power projects is a significant policy change and has the potential to help planned nuclear projects across the Middle East and North Africa (Mena) region move forward.

On 11 June, World Bank President Ajay Banga confirmed the policy revision, which recognises a commonly held view that nuclear energy is an important part of the solution for meeting climate targets and rising electricity demand.

Planned nuclear projects in the region, like those elsewhere in the world, face complex challenges that include regulatory hurdles, funding, delivery and geopolitics.

While these issues apply to all projects in the region, the financial challenges differ. For countries such as Egypt and Jordan, the challenge is securing affordable capital for such large-scale projects. In Egypt’s case, this problem was overcome with government support from Russia.

For the wealthier GCC states, the main challenge is not funding, but rather securing the necessary regulatory approvals, managing the complexities of delivering nuclear projects and attracting the right international partners.

The World Bank’s return to nuclear may help address both these obstacles. For countries that need funding support, it can be a direct lender. For others, it can be a useful partner offering validation and technical expertise.

The World Bank could also provide a further catalyst for the development of small modular reactors. Its role as a lender could be crucial in making these projects financially viable. A new source of financing, particularly at the early project development stage, could prove vital in moving these plans into actual projects.

READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF

Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:

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To see previous issues of MEED Business Review, please click here
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Colin Foreman

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