The Dow Chemical Co. recently became the first company to receive a trading license in Saudi Arabia
The Dow Chemical Co. recently became the first company to receive a trading license from the government of Saudi Arabia, allowing 100 percent ownership in the country’s trading sector, expanding Dow’s long history of partnership and investment in Saudi Arabia.
The trading license advances Dow’s ability to deliver products designed to benefit Saudi Arabia in the areas of sustainable development, energy-efficiency, oil and gas, alternative energy and water. Saudi Arabia recently approved the issuance of trading licenses to companies outside of the kingdom in alignment with the country’s strategy to diversify its economy and address challenges brought by lower global energy prices.
“Dow is truly honored to be the first company to receive a trading license and advance our legacy of strategic partnerships and investments in the Kingdom,” said Andrew Liveris, Dow’s chairman and CEO in a news release. “Dow has been a strategic partner in Saudi Arabia for nearly 40 years and we look forward to playing a key role in helping advance the Saudi’s Vision 2030 plan designed to create a vibrant society and a thriving diversified economy.”
The Deputy Crown Prince of Saudi Arabia, Mohammad Bin Salman Al Saud, presented the trading license directly to Liveris at the Royal Embassy of Saudi Arabia in Washington, D.C., and in the presence of Dr. Majid bin Abdullah Al Qasabi, minister of commerce and investment, and Khalid Al-Falih, minister of energy and mineral resources of Saudi Arabia and chairman of Saudi Aramco.
Dow is the largest foreign investor in Saudi Arabia, and maintains several joint ventures in the region including a joint venture with Juffali & Brothers, and Saudi Acrylic Monomer Company. Additional strategic investments in the country include Sadara Chemical Company, Dow’s joint venture with Saudi Arabian Oil Company (Saudi Aramco), agreements with King Abdullah University of Science and Technology to construct a new Dow Middle East research and development center, and a reverse osmosis manufacturing facility – the first unit of its kind outside of the United States.
Dow currently has more than 500 employees in Saudi Arabia. The trading license is expected to create additional employment opportunities for the highly educated Saudi workforce, with a particular focus on improving women’s participation in the local workforce.
A Dow spokesperson sent the following statement about the trading license:
“Following the recent receipt of its trading license allowing 100 percent ownership in Saudi Arabia’s trading sector, Dow expects to initiate feasibility studies in 2016 for the establishment of domestic and logistics hubs in the Kingdom for Dow products being imported into the country. The license also enables Dow to now hire a local sales force, enabling the Company to better serve its local customers.
This is a significant achievement for Dow in the kingdom, which has become an active contributor to the long-time growth of the economy and the petrochemical sector. Dow’s presence in Saudi Arabia is defined by landmark investments and a growing commercial presence. The receipt of this trade license is important, and will enable Dow’s ability to deliver high-value, innovative products – including those that benefit Saudi Arabia in the areas of sustainable development, energy-efficiency, oil and gas, alternative energy and water. Dow will continue to invest and advance the strategic priorities of the Kingdom, in support of the recently launched Vision 2030 plan.”