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.

For Dow, a sale would fit a broader push to streamline its portfolio and improve profitability. The company announced plans in January to cut roughly 13% of its workforce.

Dow reported a negative investment balance of $793 million in Sadara as of June 30 and suspended recognition of losses from the venture during the first quarter of 2026.

A sale could potentially give Aramco an opportunity to consolidate its position in one of Saudi Arabia’s largest petrochemical assets at a time when Dow is under increasing pressure to cut costs and strengthen its balance sheet.

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