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.
