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Gulf nuclear revival takes shape

1 September 2026

 

Nuclear energy is becoming an increasingly important part of long-term energy planning in the GCC as governments seek to diversify power generation, strengthen energy security and meet decarbonisation targets.

The signing of a civil nuclear cooperation deal between Saudi Arabia and the US in July marked the most significant development in the kingdom’s nuclear programme for several years, providing a framework for bilateral cooperation as Riyadh advances preparations for its first commercial nuclear power plant.

The agreement also comes as the regional power market is setting the stage for a broader nuclear revival. Rapid growth in electricity demand from industry, desalination and digital infrastructure is increasing the need for reliable low-carbon electricity.

With the UAE operating the Middle East’s first commercial nuclear power station, Saudi Arabia targeting up to 17GW of nuclear generating capacity by 2040 and Bahrain evaluating small modular reactor (SMR) technologies, nuclear energy is set to play an increasingly important role in the GCC’s long-term power projects pipeline.

Nuclear ambitions

Saudi Arabia’s nuclear ambitions are not new. The kingdom announced plans in 2011 to build 16 nuclear reactors over 20 years as part of its energy diversification strategy.

Riyadh views nuclear power not only as a source of low-carbon electricity, but also as a way to reduce domestic consumption of oil and natural gas while supporting industrial growth and expanding desalination capacity.

Since then, the programme has evolved to focus initially on the development of two large-scale reactors, while also supporting longer-term plans for SMRs, domestic fuel-cycle development and the regulatory institutions required for a civilian nuclear industry.

Despite progress being slower than initially envisaged, Saudi Arabia has continued to develop the regulatory, institutional and procurement framework for its nuclear programme, and has established the Nuclear and Radiological Regulatory Commission and the Saudi Nuclear Energy Holding Company.

The US-Saudi civil nuclear agreement is the latest milestone in that process. It follows a joint declaration signed last November and lays the legal foundation for a decades-long, multibillion-dollar partnership between the two countries. 

According to the US Department of Energy, the agreement will also provide access for US companies to Saudi Arabia’s nuclear energy programme and “expand American nuclear technology exports”.

The deal is part of a broader US effort to regain a stronger position in the global civil nuclear market. An executive order signed by President Donald Trump in May 2025 directed the US government to promote American nuclear exports and expand international nuclear cooperation. The Saudi deal explicitly builds on that policy.

While the agreement does not determine which company will build Saudi Arabia’s first reactors, it creates a clearer route for US firms to participate in the kingdom’s civilian nuclear programme, subject to the necessary regulatory and congressional approvals.

Nuclear is set to play an increasingly important role in the GCC’s long-term power projects pipeline

Flagship project

Saudi Arabia’s first commercial nuclear power plant is central to the kingdom’s nuclear ambitions. Planned at Khor Duwaiheen on the Gulf coast, the project comprises two 1.4GW reactors and is being advanced by King Abdullah City for Atomic & Renewable Energy under the Saudi National Atomic Energy Project.

Technical bids were invited in 2022 and Saudi Arabia has since continued technical and commercial discussions with shortlisted reactor vendors, despite bid deadlines being extended several times. 

The four nuclear technology providers reported to be pursuing the project are China National Nuclear Corporation, Electricite de France (EDF), Korea Electric Power Corporation and Russia’s State Atomic Energy Corporation Rosatom. 

US nuclear technology company Westinghouse was previously involved in the Duwaiheen project procurement, although it had dropped out of the race by March 2025, according to sources.

The US nuclear industry’s own revival could help to strengthen its ability to compete in overseas markets. Westinghouse confidentially filed for a US initial public offering in July, highlighting renewed investor interest as Washington seeks to broaden investment in the sector.

Meanwhile, the Nuclear Energy Agency identifies Saudi Arabia’s procurement process as one of the important unresolved reactor competitions in the international market. About 40% of proposed nuclear projects globally have yet to select a technology supplier, leaving markets such as Saudi Arabia open to major international vendors.

The scale of the opportunity also extends beyond the reactor contract itself. The planned 2.8GW facility represents only about a sixth of Saudi Arabia’s stated aim of developing 17GW of nuclear capacity by 2040, suggesting the kingdom’s first commercial power plant is likely to be the beginning of a broader programme rather than a standalone project.

Beyond the reactor

While the engineering, procurement and construction (EPC) contract for the reactor will be the programme’s highest-profile award, it is only one element of the wider investment needed to establish a civilian nuclear industry. Nuclear programmes require extensive ecosystems of supporting infrastructure, specialist engineering capabilities, fuel supply, workforce development and regulatory oversight that extends well beyond construction.

This is illustrated by the UAE’s Barakah programme, which entered commercial operations in September 2024. According to Emirates Nuclear Energy Company (Enec), more than 2,000 UAE firms have secured contracts worth over $6.7bn supporting the construction, operations and maintenance of the Barakah plant.

Enec says the programme has helped develop a local nuclear supply chain, while the plant’s long-term operation continues to create opportunities in maintenance, spare parts and other services. 

In July 2025, Enec and Westinghouse signed an agreement to explore fuel supply chain cooperation and the expansion of Westinghouse’s support for operations and maintenance at Barakah.

Saudi Arabia has also made clear that its ambitions extend beyond large commercial reactors. The kingdom’s long-term strategy includes plans for SMRs, the development of domestic uranium resources and elements of the nuclear fuel cycle.

Energy Minister Prince Abdulaziz Bin Salman has said Saudi Arabia intends to use its domestic uranium resources across the nuclear fuel cycle, including in the production of yellowcake and low-enriched uranium. 

These plans could significantly broaden the future projects market in the kingdom. In addition to power generation assets, opportunities could emerge in uranium exploration, mining, processing, fuel services, research facilities, specialist manufacturing and long-term operations and maintenance.

The kingdom’s long-term strategy includes plans for SMRs, the development of domestic uranium resources and elements of the nuclear fuel cycle

Regional outlook

Saudi Arabia’s programme forms part of a broader shift towards civilian nuclear energy across the Gulf. 

The UAE has already demonstrated the region’s ability to develop, finance and operate large-scale nuclear infrastructure through the 5.6GW Barakah nuclear power plant, which now supplies approximately a quarter of the country’s electricity through its four installed units.

The country’s next nuclear expansion is at an early stage. Additional nuclear capacity of 2.8GW is not expected to be installed until 2039, implying procurement discussions could begin next year.

The UAE’s Federal Authority for Nuclear Regulation said in February that it is prepared for future capacity additions and is ready to adopt new nuclear technologies, although it had yet to receive a formal proposal for an expansion. Tariff comparisons with the UAE’s growing pipeline of round-the-clock renewables projects are also expected to influence the viability and timing of further nuclear schemes.

Elsewhere in the region, Bahrain is exploring the use of nuclear power for domestic consumption, as well as for the potential export of surplus. State energy conglomerate Bapco Energies is tasked with studying the prospect of building a modular nuclear power plant in the country.

According to sources, the proposed project is being led by BeVentures, the venture capital arm of Bapco Energies, which was launched in July 2024. Under the plan that is being studied, power produced by a nuclear facility would be supplied mainly to major industrial complexes in the country, such as Aluminium Bahrain and Bapco Refining, for the clean production of aluminium and refined products.

Meanwhile, Egypt is making progress with its first commercial nuclear power plant. Construction is under way on the four-unit, 4.8GW El-Dabaa project being developed with Russia’s Rosatom. 

In July, the reactor pressure vessel was installed at Unit 2 of the plant. The project is expected to begin generating electricity from its first units in 2028. 

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Mark Dowdall

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