Dow Chemical plans logistics centre in Saudi Arabia

27 June 2016

Kingdom granted firm’s trading arm 100 per cent ownership

US-based Dow Chemical Company plans to quickly initiate a study looking into the establishment of a logistics centre for its products in Saudi Arabia.

It is understood the study will help Dow Chem identify the future location and investment required for the new logistics centre.

The decision follows its being granted a 100 per cent ownership in the kingdom’s trading sector.

“The 100 per cent-owned trading license advances Dow’s ability to deliver high-value, innovative products… in the areas of sustainable development, energy-efficiency, oil and gas, alternative energy and water,” Dow Chemical said in a statement.

Until recently, Saudi Arabia required all foreign companies in the retail and wholesale sector to have a local partner.

Prior to the relaxation of the kingdom’s commercial agency law, ownership levels for foreign investors in the kingdom’s retail and wholesale sector was pegged at a maximum of 75 per cent.

The recent change in policy is in line with Saudi Arabia’s strategy to diversify its economy and address challenges brought by lower energy prices.

Dow Chem said it plans to use its new licence to support employment opportunities in Saudi Arabia and will focus specifically on improving the participation of women in the domestic labour force, according local media reports citing company spokeswoman Sarah Blodjett.

 

 

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