The United States is expected to announce a new agreement allowing Saudi Arabia to develop a civilian nuclear programme, according to U.S. media reports and Reuters.
The announcement is expected on Wednesday by the administration of U.S. President Donald Trump.
The proposed 30-year agreement would establish a framework for civil nuclear cooperation and is expected to be submitted to the U.S. Congress for review.
The arrangement could be worth billions of dollars, with U.S. companies potentially participating in the construction of nuclear facilities in the kingdom.
The proposal has drawn attention because it could allow Saudi Arabia to enrich uranium under certain conditions, raising concerns among some lawmakers, regional allies, and nuclear non-proliferation advocates.
According to reports, Saudi Arabia could be permitted to enrich uranium on its own territory after completing a joint study with the United States.
The fuel would be produced at a U.S.-built enrichment facility rather than relying solely on imported nuclear fuel.
Reuters reported that the proposed agreement provides a legal pathway for cooperation on the nuclear fuel cycle but does not require Washington to transfer enrichment technology or capabilities to Saudi Arabia.
If the United States ultimately objects to enrichment after the joint study, Saudi Arabia would reportedly be barred from pursuing enrichment independently or with another foreign partner for 10 years.
The agreement is not reported to include the restrictions commonly referred to as the "gold standard," which prohibit uranium enrichment and spent fuel processing.
The proposal has prompted concern among nuclear experts, former Israeli officials, and some members of the U.S. Congress over possible proliferation risks.
Israel has repeatedly expressed opposition to a Saudi civilian nuclear programme involving uranium enrichment.
The issue has also drawn comparisons with U.S. policy toward Iran, with critics questioning differing approaches to enrichment activities in the region.
Saudi Arabia says its nuclear programme supports economic diversification under Vision 2030 by reducing reliance on oil and gas for electricity generation.
The kingdom has previously stated it does not plan to acquire nuclear weapons, although Crown Prince Mohammed bin Salman said in 2018 that "without a doubt if Iran developed a nuclear bomb, we will follow suit as soon as possible".
The proposed agreement is also reported to be separate from any effort to normalize diplomatic relations between Saudi Arabia and Israel.