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Subject

Nuclear power development in the Gulf.

Significance

Last month's nuclear agreement between Iran and the P5+1 (UN Security Council permanent members plus Germany) received the public backing of the Gulf Cooperation Council (GCC) states after a meeting between Gulf foreign ministers and US Secretary of State John Kerry on August 2. Yet GCC leaders remain concerned that the deal does not eliminate Iran's nuclear industry and fear that it will try to develop weapons capability. Several GCC states are advancing the development of civilian nuclear energy programmes, mainly to address rising domestic demand for electricity, but also with the regional rivalry with Iran in mind.

Impacts

Hydrocarbons will dominate the GCC power sector while subsidies remain.

Nuclear expansion will increase regional security risks.

The GCC envisages 20 nuclear reactors by 2030, producing 23 Gigawatts of electricity.

Other GCC states will draw from the UAE's experience in pioneering nuclear development in the Gulf.

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