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Asked whether the question of eroding Israel’s “security” included Riyadh establishing a civilian nuclear programme on its soil, Hanegbi said that for that, Israel’s consent was not needed.

“Dozens of countries operate projects with civilian nuclear cores, and with nuclear endeavours for energy, this is not something that endangers them nor their neighbours,” he said.

https://www.aljazeera.com/news/2023/7/31/road-to-normalising-ties-with-saudi-arabia-still-long-israeli-official

Why wasn't the U.S. keen in having Saudi Arabia develop nuclear power despite being a reliable ally of the U.S. for so long, especially with allies such as Japan and South Korea being allowed to develop nuclear power for many years? I am trying to understand why they didn't consider allowing them to develop it a long time ago. What are all the negative outcomes that could come from allowing Saudi Arabia to develop nuclear power?

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Because some fear it could lead to a nuclear arms race in the middle east.

U.S. approved secret nuclear power work for Saudi Arabia

Many U.S. lawmakers are concerned that sharing nuclear technology with Saudi Arabia could eventually lead to a nuclear arms race in the Middle East.

While they may be a longstanding ally there are concerns that them having a nuclear power could result in more turmoil in the middle east.

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