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Saudi Electronics Market Growth Attracts Global Tech Firms

An LG employee showcases the company’s latest products (Asharq Al-Awsat)
An LG employee showcases the company’s latest products (Asharq Al-Awsat)
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Saudi Electronics Market Growth Attracts Global Tech Firms

An LG employee showcases the company’s latest products (Asharq Al-Awsat)
An LG employee showcases the company’s latest products (Asharq Al-Awsat)

Saudi Arabia’s economy is gaining strong momentum as major projects and diversification programs accelerate, making it one of the most attractive markets for global technology and industrial solutions companies in the region.

A report by Mordor Intelligence estimated the Kingdom’s home appliances market at around $4.03 billion in 2024, with projections to reach $4.81 billion by 2029, at a compound annual growth rate of 3.61 %.

The growth is driven by rapid urban expansion, rising demand for new housing, and consumers’ increasing preference for energy-efficient appliances.

Among the international companies strengthening their foothold in the local market is South Korea’s LG Electronics, a leading player in heating, ventilation, air conditioning, and advanced energy solutions.

Saudi Arabia hosts LG’s only Arab factory, one of 11 worldwide, dedicated to producing high-efficiency air conditioners, in partnership with Shaker Group, LG’s exclusive distributor and local manufacturer.

The LG–Shaker plant is regarded as one of the most successful examples of industrial cooperation between global and local companies.

It provides cooling systems tailored to regional conditions, including units designed to withstand sandstorms and high temperatures, in line with Saudi Arabia’s efficiency and sustainability standards.

Partnership with NEOM

During a recent media tour attended by Asharq Al-Awsat, LG revealed that its market share in air dryers has reached 27 %, the highest among competitors.

James Lee, President of LG Electronics Middle East and Africa, told Asharq Al-Awsat that the company continues to maintain a strong position in Saudi Arabia’s home appliances sector, particularly in refrigerators, washing machines, and air conditioners.

He said LG is working to strengthen its consumer segment presence and expand its smart, Internet of Things–based solutions, while also developing offerings for government projects and enterprise clients.

Reflecting its growing focus on high-tech sectors, LG recently signed a tripartite memorandum of understanding with Shaker Group and Data Volt to supply advanced cooling systems for an artificial intelligence data center under development in Oxagon, the industrial hub of the NEOM mega-project. The solutions will utilize the latest thermal management technologies.

Arabic Integration

LG continues to tailor its products to local lifestyles, developing appliances that meet the needs of Saudi families and their culinary traditions, while incorporating Arabic language support into user interfaces and smart applications.

Il Hwan Lee, Head of Home Appliances at LG Electronics Middle East and Africa, said: “After studying the daily routines, cooking habits, and communication styles of Saudi families, we designed products that fit seamlessly into their lives, as an expression of our respect for Saudi culture through innovation.”

He concluded by reaffirming LG’s commitment to expanding its presence in the Saudi market through innovative solutions that support the transition toward smart and sustainable homes, in line with Vision 2030, which places technology and sustainability at the heart of economic development.

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Business

India Secures 60 Days of Oil Supply amid Hormuz Disruption

Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)
Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)
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India Secures 60 Days of Oil Supply amid Hormuz Disruption

Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)
Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)

India has secured crude oil supplies for the next 60 days, ensuring stable fuel supplies in the country despite disruption in shipments from the Middle East, the oil ministry said in a statement on Thursday.

India, the world's third biggest oil consumer and importer, was buying over 40% of its oil imports from the Middle East. Those supplies are disrupted due to the US-Israeli war on Iran.

Higher availability of crude in global markets, mainly from the Western hemisphere, has helped offset the shortfall, the government said.

Taking advantage of a temporary US waiver, Indian refiners have also ramped up purchases of Russian crude, securing millions of barrels to fill the supply gap.

"Despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the Strait," the ministry said.

As a net exporter of petroleum products, India’s domestic availability of petrol and diesel remains structurally secure, the government said.

The world's fourth-largest refiner has oil and fuel stocks sufficient to meet 60 days of demand, against a total storage capacity of 74 days, it added.

"Nearly two months of steady supply is available for every Indian citizen, regardless of what happens globally. The next two months of crude procurement have also been secured," it added.

India has asked refiners to maximize production of liquefied petroleum gas, used as cooking fuel, as the nation was buying 90% of its LPG imports from the Middle East.

Domestic daily LPG production has been increased by 40% to 50,000 metric tons against a requirement of 80,000 tons, it said.

In addition, Indian companies have secured 800,000 tons of LPG cargoes from the United States, Russia, Australia, and other countries, it said.

These shipments, arriving across India's 22 LPG import terminals, provide roughly one month of assured supply, with further procurement underway, the government said.

Business

SAMA Licenses Two Companies to Provide Open Banking Services

SAMA Licenses Two Companies to Provide Open Banking Services
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SAMA Licenses Two Companies to Provide Open Banking Services

SAMA Licenses Two Companies to Provide Open Banking Services

The Saudi Central Bank (SAMA) announced the licensing of “Altknwlwjya aljadydh llhulul albrmjyh” and “lyn tknwlwjyz Company Saudi Arabia litqniyat nuzum almaelumat” to conduct payment services by providing account information—one of the services associated with open banking.

The licenses were granted following the successful completion of the regulatory sandbox phase under SAMA’s supervision.

The decision reflects SAMA’s ongoing efforts to support and enable the financial sector, enhance the efficiency and flexibility of financial transactions, and promote innovation in financial services. This aims to advancing financial inclusion and expanding access to financial services across all segments of society.

SAMA emphasizes the importance of dealing exclusively with authorized financial institutions. To view licensed and permitted financial institutions, visit SAMA's official website.

Business

UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
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UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)

Britain's economic ‌growth prospects this year received the sharpest downgrade of any major economy in the OECD's interim forecast update on Thursday following the US-Israeli war ​on Iran, while inflation is set to rise faster too.

The Paris-based international body cut its 2026 forecast for British economic growth by half a percentage point to 0.7%, compared with a 0.4 percentage point downgrade for the euro zone and a 0.3 percentage point upgrade for the United States.

"Planned fiscal tightening and higher energy prices ‌are anticipated to keep ‌growth subdued in the United ​Kingdom, ‌though the ⁠impact ​will be ⁠attenuated by lower policy rates next year," Reuters quoted the OECD as saying in its report.

Following are further highlights from the report and other context:

Britain's growth forecast for 2027 is unchanged at 1.3%.

Britain's inflation forecast for 2026 is revised up by 1.5 percentage points from December to 4.0%, the ⁠biggest upward revision of any large, advanced ‌economy.

UK inflation in 2027 ‌is forecast to be 2.6%, 0.5 percentage ​points higher than in ‌December and above the Bank of England's 2% target.

Poorer UK households spend more on gas and electricity than in other rich countries, though total energy spending makes up a smaller share of UK inflation than elsewhere.

The OECD expects the ‌BoE to keep interest rates unchanged this year then cut in Q1 2027 as inflation ⁠eases.

⁠Britain's Office for Budget Responsibility, in forecasts finalized just before the start of the conflict, predicted GDP growth of 1.1% this year and 1.6% in 2027.

The BoE this month forecast inflation would rise to 3.0-3.5% over the next couple of quarters.

Prime Minister Keir Starmer has made boosting growth and reducing the cost of living top goals for his government.

Finance minister Rachel Reeves said the forecasts showed the war in the Middle East ​was affecting Britain but ​she would still focus on "regional growth, embracing AI and innovation, and establishing a closer relationship with the EU."