Saudi Arabia Pursues Nuclear Ambitions Amid Oil Wealth

Saudi Arabia's nuclear ambitions are not driven by concerns over running out of oil. The kingdom sits on vast reserves, produces significant amounts of natural gas, and has ample sunlight to support a solar industry. Instead, Riyadh is pursuing atomic energy to preserve more oil for export, fuel its modernization drive, strengthen ties with Washington, and gain another source of geopolitical leverage.

The civil nuclear cooperation agreement signed with the United States on July 22, 2026, would create a decades-long partnership worth billions of dollars. However, it has been put in limbo due to concerns over uranium enrichment and a potential regional arms race.

Saudi Arabia's power system still relies heavily on hydrocarbons, with natural gas supplying around 58% of its electricity and oil providing roughly 41%. A nuclear plant can provide steady power, reducing the need to burn exportable crude for domestic use. This opportunity cost matters, as the kingdom consumes over a quarter of its produced oil.