The United States is expected to announce a new agreement with Saudi Arabia on Wednesday that will support the establishment of a civilian nuclear programme in the kingdom.

According to reports by the New York Times and the Wall Street Journal, the deal will allow American companies to participate in developing Saudi Arabia’s nuclear energy sector and is expected to provide billions of dollars for the US nuclear industry.

The proposed 30-year agreement reportedly includes a provision for US companies to build a uranium enrichment facility in Saudi Arabia if a joint feasibility study recommends it.

However, the planned agreement has drawn concerns from some US lawmakers and Israeli officials, who fear the programme could eventually be used to develop nuclear weapons.

The agreement is expected to be submitted to the US Congress in the coming days, although congressional approval is not required for it to take effect.

The development comes amid renewed tensions in the Middle East, with Iran-backed Houthi rebels threatening to blockade Saudi ports following renewed hostilities involving the United States, Iran and the rebels.