Kingdom granted firms 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 kingdoms trading sector.
The 100 per cent-owned trading license advances Dows 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 kingdoms commercial agency law, ownership levels for foreign investors in the kingdoms retail and wholesale sector was pegged at a maximum of 75 per cent.
The recent change in policy is in line with Saudi Arabias 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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