Saudi Arabian electricity and water needs for a rapidly growing population and economy have justifiably led to a decision to begin a nuclear energy program for emissions-free, reliable power. In the backdrop of the Saudi tender for construction of the country's first nuclear units, the U.S. nuclear industry has experienced steady decline, while the foreign competition has become increasingly able and assertive. Among the many challenges the U.S. faces in competing for the Saudi project is the lack of a bilateral nuclear cooperation agreement with Riyadh, which not only would block U.S. industry from participating in the Saudi nuclear market, but also potentially undermine the bid by Korea, a close and longtime U.S. civil nuclear partner. Failing to conclude or obstructing a U.S.-Saudi 123 agreement essentially opens the door for Russia and China, which would not only result in the loss of U.S. business opportunities, but also undercut multiple pathways through which the U.S. could positively affect the trajectory and principles of the Saudi program at this embryonic stage.