Dow Inc. is weighing options for its 35% stake in the $20 billion Sadara Chemical Co. joint venture with Saudi Aramco, potentially leading to a complete exit. This move is part of Dow's strategy to reshape its portfolio in response to a sustained downturn in the chemicals industry. Saudi Aramco currently holds the remaining 65% of Sadara and could acquire Dow's share, although other strategic or financial investors might also bid for the stake. No final decision has been made, and Dow might ultimately choose not to proceed with a transaction.
The Sadara joint venture, which began commercial operations in 2017, has faced significant financial challenges, with cumulative losses reaching 44.2 billion Saudi riyals ($11.8 billion) by the end of 2025, representing 124% of its share capital. The company last reported a profit in 2021, and its revenues for 2025 totaled 9.87 billion Saudi riyals. Dow stopped recognizing Sadara's losses on its balance sheet in the first quarter of 2026 after its cumulative equity losses for Sadara reached $1.4 billion, matching its existing obligations.
The potential exit follows an ongoing strategic review of Sadara by Dow and Saudi Aramco, which was initially expected to conclude by July 2026. Dow's former CEO, Jim Fitterling, mentioned the review in January 2026, stating its aim was to enhance the long-term resilience of the joint venture. CFO Jeff Tate reiterated in July 2026 that the review was progressing, focused on optimizing shareholder value. The discussions regarding Dow's potential exit are reportedly in early stages and remain confidential.
