EXPLAINER: Why is the US-Saudi deal raising concerns?

DUBAI — The Trump administration is backing a nuclear energy agreement with Saudi Arabia that would allow the kingdom to enrich uranium and process spent nuclear fuel, raising concerns among some U.S. lawmakers and Middle Eastern allies over the risk of nuclear weapons proliferation.

The proposed agreement, which has been submitted to the U.S. Congress, would expand civil nuclear cooperation between Washington and Riyadh by giving Saudi Arabia access to U.S. nuclear technology while opening opportunities for American companies to participate in the kingdom's nuclear energy projects.

Saudi Arabia, a signatory to the Nuclear Non-Proliferation Treaty, has pledged not to develop nuclear weapons and accepts international inspections of its nuclear activities. However, the proposed pact does not include the so-called "gold standard" provision that would prohibit Saudi Arabia from enriching uranium or reprocessing spent nuclear fuel, two activities that could potentially be used to produce material for nuclear weapons. It also does not require an additional international inspection protocol.

The omissions have raised concerns among some members of Congress and regional allies, including Israel, especially after the United States cited Iran's uranium enrichment program as one of the reasons for military action earlier this year. Lawmakers have 90 legislative session days to block the agreement, although doing so would require a two-thirds majority to override a potential presidential veto.

Saudi Arabia says its nuclear program is intended to diversify its energy sources, reduce carbon emissions, and free up more oil for export under Crown Prince Mohammed bin Salman's economic diversification strategy. The kingdom currently generates most of its electricity from oil and natural gas, and nuclear power could support energy-intensive industries such as water desalination and air conditioning.

At the same time, Saudi officials have repeatedly said the kingdom would seek nuclear weapons if Iran were to acquire one, a position that has fueled concerns about the country's long-term nuclear ambitions.

The agreement could also provide strategic and economic benefits for the United States. A civil nuclear partnership would position American companies to compete for contracts to build Saudi nuclear power plants while giving Washington greater insight into the kingdom's nuclear activities.

The deal is being negotiated under Section 123 of the U.S. Atomic Energy Act of 1954, which governs civilian nuclear cooperation with foreign countries and requires participating nations to meet strict nonproliferation standards. Any agreement must also undergo congressional review.

If the agreement does not move forward, Saudi Arabia has other potential partners for its nuclear program. China, Russia, South Korea, and France have all expressed interest or are considered possible suppliers for future Saudi nuclear projects.

One of the most closely watched issues remains uranium enrichment. While the proposed agreement creates a legal framework for cooperation on the nuclear fuel cycle, including uranium enrichment, a Reuters source said it does not require the United States to transfer enrichment technology or capabilities to Saudi Arabia.

The issue remains diplomatically sensitive, with Israel continuing to oppose the development of a Saudi civilian nuclear program that includes uranium enrichment capabilities. -Reporting by Yousef Saba; additional reporting by Timothy Gardner and Patricia Zengerle in Washington; Additional writing by Angus McDowall; Editing by Frank Jack Daniel, William Maclean and Alistair Bell/Reuters