Dow considers exiting $20 billion Saudi Aramco partnership

American chemical company Dow is considering exiting its $20 billion joint venture with Saudi Aramco, known as Sadara Chemical. Dow currently holds a 35 percent stake in the partnership, while Aramco owns the remainder.

According to reports, Saudi Aramco may have the opportunity to buy out Dow’s share, though other strategic or financial investors could also emerge as bidders. A final decision has not yet been reached, and Dow could ultimately decide against the transaction.

The potential move is part of Dow’s efforts to restructure its business portfolio amid a prolonged downturn in the chemical industry. The company is seeking to refocus capital on activities expected to yield higher returns.

Regional instability in the Middle East has also contributed to the decision. Conflicts in the region have increased operational and shipping costs, disrupted supply chains, and impacted the movement of petrochemical products. Dow previously noted that such conflicts have had direct effects on its joint ventures. As of June 30, Dow reported a negative investment balance of $793 million regarding its stake in Sadara Chemical.