Dow Chemical's US$17.4 billion (Dh63.9bn) petrochemical joint venture with Kuwait's state oil firm will go ahead as planned and is in the best interests of the country, the company said yesterday in response to calls from some Kuwaiti politicians for the deal to be scrapped.
The US firm and the Kuwait Petroleum Company (KPC) signed an agreement at the beginning of this month to launch a new petrochemical company, with KPC required to make a net payment of $6bn to buy part of Dow's business.
The new company, K-Dow Petrochemicals, will start operations on Jan 1 and produce sophisticated plastics and other petrochemicals at plants in Kuwait and existing Dow Chemical facilities across the world.
The agreement has been criticised by members of the Kuwaiti parliament, who say it is too expensive and not in the best interests of the government.
The chairman and chief executive of Dow Chemical, Andrew Liveris, said yesterday: "In recent weeks there has been much discussion and debate about whether a fifth partnership to establish a new joint Kuwaiti-American company - K-Dow Petrochemicals - is in the long-term interest of the people of Kuwait. I know from personal experience that our Kuwaiti partners negotiated with tenacity and resolve to assure the company we were building together would be one that would be worthy of the immense talent and energy [of the] Kuwaiti men and women who would become its foundation."
Dow said the deal had been approved by all necessary government bodies, including the Kuwaiti Supreme Petroleum Council, and had even been revised at the last minute in favour of Kuwait. At the signing of the agreement, Mr Liveris predicted the company would have annual sales of $11bn.
The dispute over the Dow deal is the latest chapter in a long-running conflict between parliament and the government over oil policy, with politicians often opposing the participation of foreign oil companies.
The main group opposing the deal, the Popular Action Bloc, threatened last Sunday to drag the prime minister before the legislature for questioning if it was not abandoned before the January start date.
The group said Kuwait was paying too much for the deal, since the valuation of Dow Chemical's business had dropped significantly since a partnership was first proposed last year.
"The deal has been mired with an exaggeration in its value and with highly inflated commitments, for the benefit of the other (Dow) party," the group said.
However, cancelling the deal could prove expensive for Kuwait. According to the agreement, any party that unilaterally scraps the deal must pay a penalty of $2.5bn to the other party.
Kuwait's government has been on the defensive since signing the deal. The political fight is taking place on a backdrop of a larger dispute between the government and parliament involving the legislature's right to question the prime minister.
On Monday, the oil minister, Mohammad al Olaim, said the government had "sought the assistance of the best international consultants to assess the deal" and was prepared to go forward.
"The deal has passed through proper channels after thorough studies," he said. "We are going ahead with the deal based on the signed agreement."
* with AFP
cstanton@thenational.ae
COMPANY PROFILE
Name: Grubtech
Founders: Mohamed Al Fayed and Mohammed Hammedi
Launched: October 2019
Employees: 50
Financing stage: Seed round (raised $2 million)
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MATCH INFO
Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)
Arsenal win 5-4 on penalties
Man of the Match: Ainsley Maitland-Niles (Arsenal)
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Result
UAE (S. Tagliabue 90 1') 1-2 Uzbekistan (Shokhruz Norkhonov 48', 86')
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Starring: Jamie Foxx, Angela Bassett, Tina Fey
Directed by: Pete Doctor
Rating: 4 stars
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
Haemoglobin disorders explained
Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.
Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.
The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.
The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.
A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.
SPECS
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Most F1 world titles
7 — Michael Schumacher (1994, ’95, 2000, ’01 ’02, ’03, ’04)
7 — Lewis Hamilton (2008, ’14,’15, ’17, ’18, ’19, ’20)
5 — Juan Manuel Fangio (1951, ’54, ’55, ’56, ’57)
4 — Alain Prost (1985, ’86, ’89, ’93)
4 — Sebastian Vettel (2010, ’11, ’12, ’13)