What is Dow considering doing with its $20 billion chemicals partnership with Aramco, and what is the current financial status of that joint venture?

Dow is considering exiting its $20 billion chemicals partnership with Saudi Aramco, specifically its 35% stake in the joint venture Sadara Chemical Co., as it contends with a prolonged industry downturn and disruptions from the Middle East conflict. As of June 30, Dow reported a negative investment balance of $793 million in Sadara, and it suspended recognition of losses from the venture during the first quarter of 2026.

What operational impact has the Middle East conflict had on Dow’s joint venture with Aramco, and how has Dow responded strategically to broader industry pressures?

The Middle East conflict led to supply chain disruptions that caused a temporary shutdown of production at Sadara’s Jubail complex, which has an annual capacity of over 3 million metric tons of chemicals and plastics. In response to ongoing industry challenges—including stagnant demand, rising European production costs, regulatory changes, global oversupply, and war-related cost increases—Dow has been reviewing its operations, divesting European assets in 2024, shedding non-core holdings globally, and announcing a 13% workforce reduction in January.

Dow weighs exit from $20 billion partnership with Aramco, Bloomberg News reports

Sep 9, 2026

Dow is considering exiting its $20 billion chemical partnership with Saudi Aramco amid industry downturns and regional conflicts. Aramco may acquire Dow's 35% stake in the Sadara Chemical joint venture, though no final decision has been made.

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Dow weighs exit from $20 billion partnership with Aramco, Bloomberg News reports

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