Dow considers exiting $20 billion chemical joint venture with Saudi Aramco

Sources familiar with the matter stated that Dow, one of the world’s leading materials science companies, is considering exiting its $20 billion chemical joint venture with Saudi Aramco as part of a portfolio reshuffle by the US company amid a prolonged industry downturn. As of last year, Dow held a 35% stake in the joint venture, named Sadara Chemical Company, while Saudi Aramco owns the remaining share. Saudi Aramco may take the opportunity to acquire Dow’s stake and increase its own holding. The sources also indicated that other strategic or financial investors may bid for Dow’s stake. No final decision has been made, and the company may ultimately choose not to proceed with a deal. Sadara was established in 2011 with the aim of developing an integrated chemical complex with an investment exceeding $20 billion. It operates 26 production units, manufacturing more than 3 million tons of chemicals and plastics annually. During the investment process, Dow has taken on exposure to Sadara’s debt, including a guarantee for a $500 million revolving credit facility to assist with potential funding shortfalls. According to Dow, Sadara drew $80 million from this facility in the fourth quarter of 2025.