Global Security Newswire

Any organization running a nuclear installation in the United Arab Emirates would assume financial responsibility for possible site accidents under terms enacted by the Persian Gulf state, the Emirates News Agency reported on Monday.

An atomic facility management firm could face more than $680 million in compensation charges for a nuclear disaster under the statute, inked by UAE President Sheikh Khalifa bin Zayed al-Nahyan. The law mandates what monetary assets must be maintained by such companies operating in the country.

"This law was drafted in accordance with the Vienna Convention on Civil Liability for Nuclear Damage as amended by the 1997 Protocol, which the UAE acceded to in August 2012," said Hamad al-Kaabi, UAE ambassador to the International Atomic Energy Agency. The burden of paying for such an event fitting the pact's description of a "nuclear incident" would go strictly to the entity overseeing operations at the site, according to the Emirates News Agency.

The measure's terms comply with agreed industry standards and the country's global commitments, the news organization said. IAEA specialists assisted in verifying that the statute falls in line with U.N. nuclear watchdog guidelines and multilateral responsibilities.

The UAE Federal Nuclear Regulation Authority would act as the government's "competent authority" in executing the terms.

"The establishment of such a robust nuclear liability regime is another step forward of the UAE government’s responsible approach to develop a solid regulatory framework for the peaceful nuclear energy program," al-Kaabi added. "This new liability regime provides a clear and predictable process for the public and nuclear industry to deal with compensation for damages that may arise in the case of a nuclear accident."

A nuclear trade agreement negotiated by the United Arab Emirates and the United States commits Abu Dhabi to refrain from pursuing atomic fuel production capabilities also suitable for generating nuclear-weapon material.