Anabelle Colaco
12 Sep 2026

MIDLAND, Michigan: Dow is considering leaving its US$20 billion chemicals partnership with Saudi Aramco as the U.S. company contends with a prolonged industry downturn and the effects of the Middle East conflict, Bloomberg News reported, citing people familiar with the matter.

Aramco could use a potential exit by Dow to acquire the U.S. chemical maker's 35 percent stake in their joint venture, Sadara Chemical Co, according to the report. Other strategic or financial investors could also bid for Dow's holding.

No final decision has been made, the report said.

Dow did not immediately respond to a request for comment, while Aramco declined to comment.

The U.S.-Israeli war on Iran has disrupted oil and petrochemical flows, constrained supply chains and increased transportation and operating costs. Dow said in July that the conflict had also directly affected its joint ventures in the region.

The disruption has added to pressures facing a chemicals industry already dealing with stagnant demand, higher production costs in Europe, changing regulatory requirements and persistent global oversupply.

Dow has been reviewing its operations in recent years as it seeks to improve profitability. The company reviewed its European assets in 2024 as well as non-core holdings across its global portfolio.

In January, Dow also announced plans to cut 13 percent of its workforce.

Sadara Chemical Co operates a complex in the Saudi city of Jubail with annual production capacity of more than three million metric tons of chemicals and plastics.

Production at the complex was temporarily halted earlier this year after the Middle East conflict caused supply-chain disruptions.

As of June 30, Dow had a negative investment balance of $793 million in Sadara Chemical Co. The company suspended recognition of losses from the joint venture during the first quarter of 2026.

Dow shares were down more than one percent.