Dow weighs exiting its $20 billion chemicals joint venture with Saudi Aramco

DOW is exploring options for its stake in Sadara Chemical Co., the roughly $20 billion joint venture it built with Saudi Aramco, including a full exit, Bloomberg News reported on September 9, 2026. Dow held a 35% interest in Sadara as of last year, with Aramco holding the remainder.

Sadara operates a large integrated complex at Jubail on Saudi Arabia's east coast, with annual capacity above 3 million metric tons of chemicals and plastics. The venture pairs Dow's downstream product expertise with Aramco's feedstock, and it has absorbed more than $20 billion of investment since inception, which makes any change in ownership consequential for both partners.

The timing points at portfolio pressure rather than a dispute. Dow is restructuring during a prolonged chemical-industry downturn, and a stake this size is one of the larger levers available to it. Aramco is the most obvious buyer given it already owns the balance of the venture, but other strategic or financial investors could bid for the holding.

Two cautions belong on this story. No final decision has been made and Dow could ultimately decide against a transaction, and neither company has commented on the record: Dow did not respond to requests for comment and Aramco declined. Investors will be watching for a formal disclosure that puts a valuation and a timeline on the stake, since the accounting treatment of an exit could move Dow's balance sheet more than its earnings.

Related Stocks

• DOW