Dow considers exit from $20B chemicals partnership with Saudi Aramco

Dow Inc. is exploring a potential exit from Sadara Chemical Co., its massive joint venture with Saudi Aramco that has absorbed more than $20 billion in total investment since its inception. The move would mark a significant retreat from one of the largest petrochemical projects ever built. Dow holds a 35% stake in Sadara, which operates an integrated chemical complex in Jubail, Saudi Arabia, capable of producing more than 3 million metric tons of chemicals and plastics annually. Why Dow wants out The chemicals sector has been stuck in an extended downturn driven by weak demand and persistent oversupply. For Dow, the Sadara partnership has meant continuous capital commitments into a venture operating in those exact headwinds. The financial strain has shown up in concrete ways. In the fourth quarter of 2025, Sadara’s Jubail complex drew $80 million from a revolving credit facility guaranteed by Dow. Dow’s interest in offloading the stake fits neatly into a broader pattern of portfolio trimming. The company has already been cutting its workforce and reviewing assets in Europe. No final decision has been made, according to the Bloomberg report. But the market clearly liked what it hear...