Dow and Saudi Aramco Sign MOU for Potential Equity Ownership Restructure in Sadara Joint Venture

Dow to Potentially Increase Equity Ownership in Sadara to 50
Percent

Sadara will add new value chains to Saudi Arabia’s vast petroleum
reserves, resulting in the diversification of the economy and region

MIDLAND, Mich. & DHAHRAN, Saudi Arabia–(BUSINESS WIRE)–The Dow Chemical Company (NYSE: DOW) and the Saudi Arabian Oil Company
(Saudi Aramco) today announced a non-binding Memorandum of Understanding
(MOU) that sets forth a process for Dow to acquire an additional 15
percent ownership interest from Saudi Aramco in Sadara Chemical Company
(Sadara), a joint venture developed by the two companies. The current
equity ownership split is 65 percent Saudi Aramco and 35 percent Dow. If
the potential transaction is concluded as presently proposed, Dow and
Saudi Aramco would each hold a 50 percent equity stake in Sadara.

“Sadara is the result of a game-changing partnership between Saudi
Aramco and Dow by delivering market-driven solutions that support the
diversification of the country’s economy,” said Andrew
Liveris, Dow’s chairman and CEO. “Increasing our equity stake in
this iconic joint venture is a powerful example of our strategic
partnership with Saudi Aramco and is yet another accelerator in Dow’s
long-term growth strategy designed to capture growing consumer-led
demand in our key end-markets of transportation, infrastructure,
packaging, and consumer products in developing regions.”

Saudi Aramco President and CEO Amin H. Nasser said, “We are proud of our
partnership with Dow given its preeminent stature among the world’s
leading chemical companies. Dow’s larger stake in Sadara is an
endorsement of the Kingdom’s vibrant ecosystem, and signals Dow’s
confidence in our partnership as a model of mutually beneficial foreign
direct investment. The time is right to fully leverage Dow’s global
leadership to further contribute to the Kingdom’s economic
transformation in line with Vision 2030.”

The potential equity equalization would occur following the later of two
events― (i) the intended separation of the Materials Science Company,
within 18 months after the close of the merger of equals between Dow and
DuPont (NYSE: DD) on August
31 and (ii) Sadara’s completion of the Creditors’ Reliability Test,
which is part of the limited-recourse financing used to fund the Sadara
project development. The anticipated financial impact of the potential
transaction is not being disclosed. The Sadara financial structure and
governance remain unchanged.

The Sadara chemical complex―the largest of its kind ever built in a
single phase―is currently operating all of its 26 world-scale units that
manufacture a portfolio of valued-added performance plastics and
specialty chemicals. The more than three million metric tons of
performance-focused products serving the Packaging, Transportation,
Infrastructure and Consumer markets will add new value chains to Saudi
Arabia’s vast hydrocarbon reserves, resulting in the diversification of
the economy and region.

About Dow

Dow (NYSE: DOW) combines the power of science and technology to
passionately innovate what is essential to human progress. The Company
is driving innovations that extract value from material, polymer,
chemical and biological science to help address many of the world's most
challenging problems, such as the need for fresh food, safer and more
sustainable transportation, clean water, energy efficiency, more durable
infrastructure, and increasing agricultural productivity. Dow's
integrated, market-driven portfolio delivers a broad range of
technology-based products and solutions to customers in 175 countries
and in high-growth sectors such as packaging, infrastructure,
transportation, consumer care, electronics, and agriculture. In 2016,
Dow had annual sales of $48 billion and employed approximately 56,000
people worldwide. The Company's more than 7,000 product families are
manufactured at 189 sites in 34 countries across the globe. References
to "Dow" or the "Company" mean The Dow Chemical Company and its
consolidated subsidiaries unless otherwise expressly noted. More
information about Dow can be found at www.dow.com.

About Saudi Aramco

Saudi Aramco is a world leader in integrated energy and chemicals. We
are driven by the core belief that energy is opportunity. From producing
approximately one in every eight barrels of the world’s crude oil supply
to developing new energy technologies, our global team is dedicated to
creating positive impact in all that we do. We focus on making our
resources more sustainable and more useful. This promotes long-term
economic growth and prosperity around the world. Visit us at www.saudiaramco.com

Note: The forward looking statements contained in this document
involve risks and uncertainties that may affect Dow’s operations,
markets, products, services, prices and other factors as discussed in
filings with the Securities and Exchange Commission (“SEC”). These risks
and uncertainties include, but are not limited to, economic,
competitive, legal, governmental and technological factors. Accordingly,
there is no assurance that Dow’s expectations will be realized. The
Company assumes no obligation to provide revisions to any forward
looking statements should circumstances change, except as otherwise
required by securities and other applicable laws.

Contacts

Rachelle Schikorra
The Dow Chemical Company
[email protected]
+1
989-638-4090
or
International Media Relations
Saudi
Aramco
[email protected]