JAKARTA - The civil nuclear deal between Saudi Arabia and the United States does not stop at reactor and electricity development. Analysts assess that this cooperation could pave the way for multibillion-dollar investments, high-tech industries, specialized labor, and geopolitical interests in the Middle East.
Arab News, quoted on Sunday, August 2, reported that the deal is expected to open a new phase of the Saudi-US economic and technological partnership. Analysts speaking to Asharq Al-Awsat said the cooperation could be a trigger for industrial and technological investment in Saudi Arabia.
This agreement is also in line with Riyadh's plan to diversify the energy mix and build a knowledge-based economy. However, its value is not only economic. This issue enters the strategic competition when the scramble for nuclear energy technology is getting tighter.
On July 22, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman and US Energy Secretary Chris Wright signed a civil nuclear cooperation known as the 123 Agreement. The two also signed a bilateral security agreement.
The 123 Agreement is an agreement based on Article 123 of the US Atomic Energy Act. This agreement is the legal basis for peaceful nuclear cooperation between the US and partner countries.
According to the US Department of Energy, the agreement establishes a legal framework for a multibillion-dollar partnership expected to last decades. The deal also paves the way for US companies to enter Saudi Arabia's nuclear energy program.
Cooperation like this allows the transfer of nuclear materials, equipment, and technology. However, the process is under strict conditions and security.
As of July 2025, the US has 26 similar agreements in force. The coverage includes 50 countries, the International Atomic Energy Agency or IAEA, and a number of other entities.
Abbas Dahouk, a former military affairs adviser at the US State Department, called the deal an important strategic milestone in Saudi-US relations. According to him, the cooperation strengthens long-term relations in the fields of advanced technology and energy security.
From an economic perspective, Dahouk said the deal could attract billions of dollars in investment, create high-skilled jobs, and support Saudi Vision 2030.
Saudi Vision 2030 is a major agenda for Saudi Arabia to reduce dependence on oil and expand new economic sectors.
According to Dahouk, the benefits of peaceful nuclear cooperation go far beyond electricity generation. The technology can be used for water desalination, health services, scientific research, agriculture, and advanced manufacturing.
Desalination is the process of converting seawater into fresh water.
The implementation is in line with the Saudi Arabian National Atomic Energy Project. The program aims to include nuclear power into the Saudi energy mix to generate electricity, desalinated water, and thermal energy, while reducing dependence on hydrocarbons for power generation.
The project has four main pillars. These pillars include large-scale nuclear power plants, small modular reactors, nuclear fuel cycles, and regulatory frameworks.
Dahouk assessed that this agreement could be the basis for Saudi-US cooperation for decades in the fields of energy, technology, education, and industrial development. The cooperation also supports the localization of advanced manufacturing, precision engineering, and high-value-added industries.
Precision engineering is the process of making components or systems with a very high level of accuracy.
According to Dahouk, the development of nuclear expertise and related technologies can benefit other sectors, including space, advanced materials, artificial intelligence, and next-generation energy systems.
However, Dahouk also assessed that the agreement had geopolitical implications that went beyond its civilian goals. Arab News said that this agreement came at a time when the competition between the US, China, and Russia in the advanced technology and energy sectors was getting stronger.
He said the success of the agreement would not only be judged by economic and technological results. Its impact on regional stability and nuclear non-proliferation would also be decisive.
Nuclear nonproliferation is an effort to prevent the spread of nuclear weapons.
According to Dahouk, Riyadh views uranium enrichment not only as an energy production matter. The issue is also related to technological sovereignty, industrial development, and strategic autonomy.
Saudi Arabia has included uranium and thorium exploration into the National Atomic Energy Project. The goal is to assess domestic reserves, expand local content, build national expertise, and secure future fuel supply opportunities for nuclear reactors.
Skytower Group Inc. CEO Eric H. Feng called the deal a historic strategic milestone. According to Feng, its value also lies in strengthening regional security and establishing a long-term framework for stability, governance, and economic growth.
Feng said large-scale manufacturing and long-term investment require a stable geopolitical environment. Peaceful nuclear cooperation based on partnership and transparency, he said, can strengthen the trust of governments, investors, and industry players in the region.
Economically, Feng assessed that nuclear power can provide Saudi Arabia with a stable base load electricity supply. This is important to support the expansion of industrial economies and the Vision 2030 goals.
Basic load electricity is an electricity supply that is available continuously to meet the main needs of the electricity system.
Feng also saw opportunities for localization of high-value industries, ranging from nuclear engineering, advanced materials, precision manufacturing, robotics, digital control systems, to special construction.
The application of peaceful nuclear can also be expanded to medicine, agriculture, water desalination, industrial inspection, materials science, and further research. In health services, nuclear technology can be used for medical diagnostics and cancer treatment with radioisotopes.
Radioisotopes are radioactive elements used, among other things, for medical examinations and therapy.
According to Feng, the industrial base can become a foothold for cooperation in precision manufacturing, aviation, space, artificial intelligence, advanced energy systems, and next-generation infrastructure.
Feng assessed that the strategic value of the deal was not measured enough from short-term results. According to Feng, a stable Middle East with strong strategic cooperation between the US and Saudi Arabia can encourage greater international investment and accelerate industrial development.
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