Dow is considering an exit from its stake in the $20-billion Sadara Chemical Company venture with Saudi Aramco as the U.S. chemicals giant battles a prolonged industry downturn compounded by the Iran war.
Dow could sell its reported 35% interest in the Saudi petrochemical complex, with Aramco potentially emerging as a buyer, Bloomberg reported on Wednesday, citing people familiar with the matter. Strategic and financial investors could also be interested, although no final decision has been made.
The potential exit comes as the global chemicals industry struggles with weak demand, persistent overcapacity and elevated costs. The Middle East conflict has added another layer of pressure by disrupting petrochemical flows and supply chains and increasing transportation and operating expenses.
Sadara itself was temporarily shut earlier this year due to conflict-related supply disruptions.
Located in Jubail Industrial City, Sadara was developed as a $20-billion mega-project and was the world's largest integrated chemicals complex built in a single phase when completed. Its 26 manufacturing plants have the capacity to produce more than 3 million metric tons of performance plastics and high-value chemicals annually.

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