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Saudi Arabia and US sign nuclear energy agreement

23 July 2026

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Saudi Arabia and the US have signed an agreement for cooperation on the peaceful use of nuclear energy.

The agreement was signed in Riyadh on 22 July by Saudi Energy Minister and Industry & Mineral Resources Minister Prince Abdulaziz Bin Salman and US Energy Secretary Chris Wright.

The agreement “aims to enhance cooperation between the two countries in the peaceful uses of nuclear energy and to facilitate the exchange of expertise, knowledge and technologies, contributing to strengthening bilateral cooperation in accordance with the highest international standards of nuclear safety, nuclear security and non-proliferation”, according to a statement carried by the official Saudi Press Agency.

“It also reflects the shared vision of both countries to expand cooperation in energy and future technologies while supporting sustainable development,” the statement said.

“The agreement builds on the historic strategic partnership between the two friendly countries and follows the announcement made during the visit of His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud, Crown Prince and Prime Minister, to the United States in November last year, on the conclusion of negotiations on bilateral cooperation in the peaceful uses of nuclear energy,” it added.

“The agreement also builds on the long-standing energy cooperation between the two countries, supporting efforts to diversify energy sources, advance cutting-edge technologies and expand opportunities for cooperation and investment in ways that serve the mutual interests of the two friendly countries,” the statement concluded.

Saudi nuclear ambitions

Nuclear development is a core component of the Saudi Vision 2030 goal of transitioning away from complete fossil fuel reliance.

Generating domestic electricity via nuclear power will allow Saudi Arabia to export more crude oil. Rapid population growth and heavy energy consumption in the industrial and household sectors – together with water desalination needs – require major power grid expansions.

The kingdom holds significant domestic uranium deposits, estimated at over 90,000 tons, which it intends to leverage for an independent fuel cycle.

In 2011, Riyadh announced plans to build 16 nuclear reactors over 20 years. The target was later revised to an initial goal of constructing two large-scale 1.4 gigawatt-electric (GWe) commercial reactors, with a long-term goal of 17 GWe of capacity by 2040.

Implemented via the Saudi National Atomic Energy Project, the strategy moved from rapid building to a focused framework: large commercial plants, small modular reactors, fuel cycle development and regulatory structures.

The government established the Nuclear Energy Holding Company in February 2022 to act as the primary commercial developer for the projects.

Separately, Saudi Arabia is advancing preparations for its first commercial nuclear power plant as part of its Vision 2030 strategy, with Khor Duwaiheen – identified as the lead site for a planned 2.8GW facility – now moving towards the procurement phase.

MEED previously reported that Riyadh had held technical and commercial negotiations with shortlisted vendors including EDF, Rosatom and Korea Hydro & Nuclear Power.

The project client, Saudi Arabia’s King Abdullah City for Atomic & Renewable Energy (KA-Care), has set and extended the bid submission deadlines several times since 2022, with advancement understood to be dependent on "progress in bilateral government-to-government talks”.

Gulf nuclear energy moves

The UAE was the first country in the GCC, as well as in the entire Middle East and North Africa region, to tap into nuclear energy for civilian use, having built and commissioned the Barakah nuclear power plant in Abu Dhabi in September 2024.

Operated by the Emirates Nuclear Energy Corporation, the Barakah nuclear plant consists of four reactors, each with a capacity of 1.4GW, providing 40 terawatt-hours (TWh), equivalent to about 25% of the UAE’s base power load.

In September last year, the plant completed its first year of full-fleet operations, generating more than 120 TWh of clean electricity since Unit 1 began operating.

Separately, Bahrain is also exploring the use of nuclear power for domestic consumption, as well as for the potential export of surplus, as MEED recently reported. 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 the nuclear facility will be supplied mainly to major industrial complexes in the country, such as Aluminium Bahrain (Alba) and Bapco Refining, for the clean production of aluminium and refined products, respectively, in line with Bahrain’s ambition of achieving net-zero emissions by 2060.

BeVentures has, in turn, approached global consultancy firms such as Bechtel, Fluor, Kent, Technip Energies and Wood to assist with concept study and early-stage planning and assessment for the modular or small nuclear power project.

Bapco Energies and BeVentures are also considering tapping into private financing and equity partnerships, in part or in full, for the proposed project, sources told MEED.

The Paris-based International Energy Agency’s Net Zero by 2050 roadmap indicates that nuclear energy will nearly double its share by 2050, with annual capacity additions reaching 30GW in the 2030s.

At the 28th UN Climate Change Conference, Cop28, which was held in Dubai in 2023, more than 20 countries pledged to triple nuclear capacity by 2050, with banks and nuclear industry players signalling their support for the pledge more recently.

The Organisation for Economic Co-operation & Development's Nuclear Energy Agency recently said that global nuclear capacity will triple by 2050 only under its most transformative scenario, with the Gulf's reactor procurement decisions among the projects that will determine which path the industry takes.

Acccording to the Nuclear Energy Outlook, China and Russia hold a strategic advantage in the international market, with Chinese-designed reactors accounting for 85 GWe of projects and Russian-designed reactors accounting for 57 GWe, more than half of which are export projects in countries including Egypt, Hungary and Turkiye.

ALSO READ: Nuclear tripling target hinges on delivery

READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
To see previous issues of MEED Business Review, please click here
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Indrajit Sen

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    After initial concerns that the market would experience a sharp downturn and project cancellations following the onset of conflict in the region, regional president McGrail says WSP has yet to see a single major contract cancelled across its regional portfolio.

    “We have seen some projects re-evaluated – questions around whether the mix between residential and commercial is right, and whether it should be luxury residential,” he says. “But as of today, we have not seen any projects cancelled, which is a real sign of resilience in the market.”

    Under the surface

    That resilience does not mean nothing has changed. McGrail is careful to separate re-evaluation from cancellation. Projects already on site and selling into the market are pressing ahead. It is schemes that have not yet been released for off-plan sales that are being paused and reconsidered.

    “None of the projects we are currently involved in have been put on hold or suspended,” he says. “It is more re-evaluation. Some of that is investor sentiment, but some of it is materials and logistics as well, which people do not necessarily consider.”

    Logistics, in particular, is a pressure that rarely makes the headlines. According to McGrail, shipping disruption has complicated the delivery of heavy equipment on certain schemes. “If we have big pieces of kit coming in – chillers or turbines for a power station – that becomes challenging,” he says.

    The bigger question is viability. And while rising material costs, set against softening sales prices, are forcing developers to reappraise the numbers, for now the balance sits firmly on the side of continuity. McGrail estimates that revalidation and feasibility work accounts for less than 3% of the firm’s current order book, with the remainder progressing as normal.

    “Requests for proposals have not slowed down across any of our disciplines or business units,” he says. “We are definitely seeing an uptick in infrastructure.”

    Infrastructure pivot

    That focus points to where McGrail expects the next few years of growth to come from. Rail sits at the centre of the UAE story, alongside road upgrades and other major developments in Abu Dhabi. In Dubai, the clearest signal of intent is the expansion of Al-Maktoum International airport.

    “Al-Maktoum is a really good indicator of the future direction of travel,” he says. “That is not a project that is slowing down. There has been a commitment to Emirates that it will move there, and it is still progressing.”

    The scale of the airport – and the challenge of relocating an airline the size of Emirates in one move – raises the question of how it will be funded. Here, McGrail returns to the theme of stability and to the mechanism that underpins it.

    “One of the beauties of this region is the ability of government to step in,” he says. “They can fund it. If the private sector does start to suffer, that is the backstop. They push money into infrastructure – roads, rail, airports – which keeps our industry moving.”

    Saudi reset

    In Saudi Arabia, the recalibration story predates the conflict, and McGrail says the change should be read as a strength rather than a retreat.

    “I am positive,” he says. “When the reprioritisation started at the beginning of 2025, having lived through the global financial crisis here, I saw the decision to stop, re-evaluate and reprioritise expenditure as a positive. When Vision 2030 was set, Saudi Arabia had not won Expo or the World Cup, so the reprioritisation was the right thing to do. Saudi Arabia will come out of it stronger. Short-term pain, long-term gain.”

    The nature of the work is shifting with the budget. McGrail sees the kingdom moving towards a model long familiar in the UAE, in which core infrastructure and a handful of landmark buildings are delivered first, before surrounding plots are carved up and sold on.

    “You establish a few key iconic buildings, then the plots on the outside are carved up and they look for external investment to come in and develop them,” he says. “It is no different from Downtown Dubai, where Emaar built the Burj Khalifa and a few buildings, then started selling plots.”

    That approach is increasingly tied to public-private partnerships (PPPs), although McGrail is measured on how far the model will stretch.

    “PPP is definitely becoming more prevalent on some of the larger infrastructure projects, though still not as significant as it was made out to be when they first started talking about it,” he says. He sees industrials, mining, healthcare and schools as a natural fit, rather than PPP becoming a blanket procurement route.

    Aviation is another priority. WSP was recently appointed to the rehabilitation of the existing terminal at Jeddah’s King Abdulaziz International airport, alongside a new terminal. It also recently secured a role on the expansion and upgrade of King Fahd International airport in Dammam.

    “Aviation is definitely a key area of focus for us as we head into the next 12, 24, 36 months,” McGrail says.

    Beyond the two dominant markets, McGrail sees pockets of activity but no challenge to the balance of the portfolio. In Qatar, he points to a recovery taking shape towards the end of last year, with WSP active on the Qatar Children’s Museum and continuing its long-running work with the Public Works Authority (Ashghal). Oman is generating masterplanning work, including reviving the Blue City scheme.

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  • Gas-fired projects drive resilience in UAE power sector

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    The $3bn Taweelah C combined-cycle gas turbine (CCGT) project has been the UAE power sector’s standout contract award this year, accounting for the majority of the $4.17bn in awards as of early September.

    The total is well below the record $12.02bn awarded in 2025, when Abu Dhabi’s $6bn round-the-clock solar photovoltaic (PV) and battery energy storage system (bess) project lifted the market to record levels. However, 2026 remains broadly consistent with recent years, compared with $5.93bn in 2024 and $3.05bn in 2023.

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    The 1,800MW sixth phase is also nearing completion, with Larsen & Toubro delivering the estimated $1.5bn project for Shuaa Energy 4, the project company formed by Dewa and Masdar.

    Dewa has increased the planned capacity of the solar park to 7,260MW by 2030, from its earlier target of 5,000MW.

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  • Riyadh awards $1.5bn metro rolling stock contracts

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    Saudi Arabia’s Royal Commission for Riyadh City (RCRC) has signed contracts worth about SR5.5bn ($1.5bn) to procure 94 additional trains for the Riyadh Metro network.

    Germany’s Siemens and France’s Alstom have been awarded the contracts. They cover rolling stock manufacture, onboard systems, equipment and related services.

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    MEED’s October 2026 report on Saudi Arabia includes:

    > COMMENT: Saudi projects hold steady
    > GOVERNMENT: Riyadh looks to reset its regional defence outlook
    > ECONOMY: Conflict bolsters case for Saudi economic diversification
    > BANKING: Saudi lenders readjust to lower lending and deposit climate
    > UPSTREAM: Aramco upstream spending gathers pace
    > DOWNSTREAM: Sabic steps up Saudi petchems investment
    > POWER: Saudi Arabia’s power award activity slows
    > WATER: Saudi water sector hits sharp slowdown
    > CONSTRUCTION: Saudi construction defies the headwinds
    > TRANSPORT: Saudi infrastructure pushes forward amid conflict
    > DATABANK: Saudi data indicates project spending shift

    To see previous issues of MEED Business Review, please click here
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    The US Department of State has initiated market research to procure a design-and-build contract for the US Pavilion at Expo 2030 Riyadh.

    According to procurement documents released through the US federal contracting portal, the project covers the full design, construction, exhibition fit-out, maintenance, and eventual decommissioning and removal of the national pavilion.

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    The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event.

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    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched Expo 2030 Riyadh Company – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    MEED’s October 2026 report on Saudi Arabia includes:

    > COMMENT: Saudi projects hold steady
    > GOVERNMENT: Riyadh looks to reset its regional defence outlook
    > ECONOMY: Conflict bolsters case for Saudi economic diversification
    > BANKING: Saudi lenders readjust to lower lending and deposit climate
    > UPSTREAM: Aramco upstream spending gathers pace
    > DOWNSTREAM: Sabic steps up Saudi petchems investment
    > POWER: Saudi Arabia’s power award activity slows
    > WATER: Saudi water sector hits sharp slowdown
    > CONSTRUCTION: Saudi construction defies the headwinds
    > TRANSPORT: Saudi infrastructure pushes forward amid conflict
    > DATABANK: Saudi data indicates project spending shift

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20580855/main.jpeg
    Yasir Iqbal