Dow Chemical 'first foreign company to receive Saudi Arabia trading license'

dowchemicalIt is hoped that the issuance of trading licenses to foreign entities will help to diversify the economy. (Image source: Kzenan/Fotolia)The Dow Chemical Company has announced that it has become the first company to receive a trading license from the Government of Saudi Arabia, allowing 100 per cent ownership in the country’s trading sector

 The trading license advances Dow’s ability to deliver high-value, innovative products that will benefit Saudi Arabia in the areas of sustainable development, energy-efficiency, oil and gas, alternative energy and water, says the company. 

Saudi Arabia recently approved the issuance of trading licenses to companies outside of the Kingdom as it steps up the drive to diversify its economy and reduce its reliance on oil revenues. Its recently announced Vision 2030 sets ambitious targets such as raising non-oil exports as a percentage of GDP to 50 per cent by 2030 from the current level of 16 per cent, and increasing non-oil revenues from SR163bn to SR1,000bn. 

 “Dow is truly honoured to be the first company to receive a trading license and advance our legacy of strategic partnerships and investments in the Kingdom,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “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.”

Dow’s investments in the Kingdom include Sadara Chemical Company (Sadara), Dow’s joint venture with Saudi Arabian Oil Company (Saudi Aramco), agreements with King Abdullah University of Science and Technology (KAUST) to construct a new Dow Middle East Research and Development Center, and a reverse osmosis manufacturing facility – the first unit of its kind outside the USA.

Dow says the trading license is expected to create additional employment opportunities, with a particular focus on improving women’s participation in the local workforce. The company currently has more than 500 employees in Saudi Arabia.  

 

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