The Nuclear Landscape in the Middle East: Status, Drivers, and the Role of SMRs

4 min 36 sec

The Middle East is entering a new phase in civil nuclear development, moving from aspiration to operation and expansion. The region’s energy mix is diversifying under pressures to decarbonise, free hydrocarbons for export, and meet surging power and water demand. Conventional large reactors are establishing a foothold, while small modular reactors (SMRs) are drawing growing interest for their flexibility, siting advantages, and non‑electric applications such as desalination and industrial heat. This article discusses the strategic drivers, opportunities, and challenges shaping nuclear power and SMRs across the Middle East.

Current programmes and pipeline

The United Arab Emirates anchors the region’s operational experience. The Barakah Nuclear Energy Plant, comprising four APR‑1400 units, is the first grid-scale nuclear programme in the Arab world and has become a regional reference for programme governance, workforce development, and safety culture. Its execution model — leveraging an experienced vendor-operator alliance, robust independent regulation, and extensive international oversight — has set a benchmark others seek to emulate.

Egypt is advancing a first-of-a-kind programme at El Dabaa with four Generation III+ units under construction with international partners and vendor financing. The project is a cornerstone of Egypt’s long-term baseload strategy on the Mediterranean coast and is intended to complement a rapidly expanding renewables programme.

Iran operates the Bushehr plant and has announced further nuclear ambitions. The programme remains encumbered by sanctions dynamics and nonproliferation sensitivities, with implications for technology access, supply chains, and financing terms.

Jordan has pursued multiple pathways, shifting from large reactor plans toward SMR options more aligned with grid size, water needs, and financing constraints. It has conducted feasibility work with several SMR developers and continues to position nuclear for power and desalination.

Saudi Arabia has articulated significant nuclear intentions to support power and industrial demand, diversify its energy mix, and underpin hydrogen and desalination initiatives. Alongside exploration of large-scale units, the Kingdom has engaged with the SMART SMR concept and reviewed alternative SMR platforms to align with localisation and supply chain goals.

Turkey, while often treated as a transcontinental market, is a regional bellwether. The Akkuyu project is proceeding under a build-own-operate model, illustrating how vendor-led financing and long-term offtake can unlock first plants. Turkey’s experience is closely watched by Middle Eastern states evaluating delivery models and risk allocation.

Israel maintains an established research reactor programme, but no declared civil power programme. Gulf states such as Oman, Kuwait, and Qatar have explored nuclear’s role intermittently, with the current focus more heavily weighted toward gas, solar, and hydrogen. Iraq has signalled interest, but faces foundational infrastructure and regulatory prerequisites.

Why nuclear and why SMRs?

The strategic rationale for nuclear in the Middle East is converging around four imperatives.

1.  Energy security and diversification remain paramount, particularly for fast-growing grids and water-stressed systems dependent on desalination.

2.  Decarbonisation commitments and global market pressures on lifecycle emissions are reshaping industrial policy, especially for export-oriented economies.

3.  Opportunity costs of burning oil and gas domestically motivate shifting to low-carbon baseload, freeing hydrocarbons for higher-value uses and export.

4.  Grid stability and system adequacy requirements increase as variable renewables scale.

SMRs are increasingly viewed as a complementary tool where large reactors may not fit well. Their smaller unit size aligns with modest or weak grids, enabling phased capacity additions and reducing overbuild risk. Factory fabrication and modular construction aim to shorten schedules and lower execution risk, although true serial production is still emerging.

Critically for the Middle East, SMRs can co-locate with desalination plants, industrial clusters, and hydrogen facilities, providing high-temperature steam and stable power. Microreactors and marine SMRs expand siting options for remote loads and islanded systems.

Technology and vendor landscape

The regional SMR conversation spans several designs and lineages. Pressurised water SMRs, such as those promoted by established nuclear suppliers, benefit from operational familiarity and conventional licensing frameworks. Advanced designs, including high-temperature gas-cooled and sodium-cooled reactors, promise higher outlet temperatures suited to process heat and hydrogen, with varying levels of technology readiness.

Vendor strategies differ markedly: some offer integrated fuel-cycle services and long-term offtake, while others pursue equipment supply with local delivery partners. Reference plants remain pivotal; first-of-a-kind risk, demonstration timelines, and supply chain depth are decisive factors for host countries seeking bankable projects.

Financing, delivery models, and localisation

Financing remains the primary gating item. Large reactors typically rely on export credit support, sovereign guarantees, and long-tenor power purchase arrangements. Build-own-operate and hybrid models have proven influential in first-mover markets by shifting construction and performance risks. For SMRs, capital efficiency and modularity are attractive, but bankability depends on standardisation, clear reference costs, and repeatable schedules. Host governments are exploring framework agreements that combine power, water, and industrial offtake to strengthen revenue certainty.

Localisation objectives are shaping vendor selection and contracting. Many Middle Eastern states target progressive local content, workforce development, and domestic manufacturing. SMRs may offer a smoother localisation ramp due to smaller components and repeatable modules, but supply chain development still requires sustained policy support, quality assurance systems, and alignment with international codes and standards.

Regulation, safety, and nonproliferation

Robust, independent regulation is a prerequisite for public trust and international cooperation. The UAE’s regulatory architecture and adherence to international instruments are widely cited as a model. New entrants are advancing nuclear laws, establishing regulatory authorities, and developing licensing pathways for novel technologies such as SMRs and microreactors.

Adapting existing large-reactor frameworks to modular designs — especially for factory-built modules, multi-module sites, and non-electric applications — will be a focal point. Nonproliferation commitments, fuel assurance arrangements, and back-end strategies — including take-back options or regional facilities— remain central to international confidence.