Sunday 29 May 2011

Did Kuwait lose out on Dow Chemical deal? » Kuwait Times

Did Kuwait really lose out on the Dow Chemical Company deal? Sadly, yes. With all the official talk doing the rounds about Kuwait transforming into a financial hub, we have ended up losing a joint venture with a company like Dow Chemical. What a waste!

When the Dow Chemical Company officially opened its office in Kuwait, I was so happy to see a company of its stature, with a technologically strong position attempt to make a successful market presence here. The interest it displayed in emphasizing bilateral ties between its investments and partnerships with Kuwait, was promising at least initially. Naturally, I thought having an office in Kuwait would work toward strengthening the existing partnership relationship, as much as to develop the com
pany's investment in the petrochemical sector. For many years , Dow Chemical Company has operated in Kuwait through the EQUATE Petrochemical Company. It was a partnership that set a great example as a joint venture project with Petrochemical Industries Company (PIC) of Kuwait.

The Dow Chemical Company filed a lawsuit against the state-run Kuwait Petrochemical Company(KPC). The company entered into another alternative agreement with ARAMCO company to build its factories in Al-Jubail, Saudi Arabia instead. I do not think it has lost as much as Kuwait has. Apart from the penalty and the lawsuit that this country face, our reputation on doing business has been tarnished. We failed to commit to the agreement signed and suffer from a lack of vision on setting up our strategies.
These are the kind of losses that we have sustained.

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