LG Electronics is accelerating qualitative growth in the Middle East market by expanding its B2G (business-to-government) operations.
On November 19 in Dubai, LG signed a strategic partnership with Expo City Dubai, a government-affiliated entity in the UAE, to collaborate on smart city development. The agreement was established following discussions held during the Korea-UAE Business Roundtable, focusing on AI technology, application services, and AI and energy infrastructure.
Under the partnership, LG will participate in a 3.5km² smart city project within Expo City Dubai, where approximately 35,000 residents will live. The project aligns with the UAE government’s national strategy, “We the UAE 2031,” and aims to advance sustainability, carbon neutrality, and energy efficiency.
LG Electronics plans to provide advanced HVAC solutions and an AI Home Hub-based smart home platform, strengthening its position as a Space-as-a-Service (SaaS) provider that offers integrated living environments. Previously, LG supplied high-brightness LED signage for the Dubai Expo in 2020 and secured a contract to deliver built-in appliances such as refrigerators, dishwashers, and ovens for 3,000 smart city residential units.
LG Electronics CEO Cho Joo-wan said, “LG’s differentiated HVAC technology and AI smart home solutions will contribute to the UAE government’s future vision,” adding that the company will “accelerate securing new B2G business opportunities in the Middle East, where many projects are government-driven.”
LG is also expanding B2B and B2G business in key Middle Eastern markets including Saudi Arabia. The company is supplying cooling solutions for the Net Zero AI Data Center project in NEOM City and is partnering with local power company ACWA Power, electronics distributor SHAKER Group, and data infrastructure firm DATAVOLT.
In Saudi Arabia, LG began its air-conditioning partnership with SHAKER Group in 1995, established a joint venture in 2006, and has expanded its B2C and B2B business since then. More recently, government-led projects have increased the proportion of B2G revenue.
LG aims to raise the share of B2B business from around 35 percent as of Q3 2025 to 45 percent of total revenue by 2030. The company plans to position itself as a comprehensive solution provider across B2C, B2B, and B2G by making the Middle East and broader Global South regions key pillars of its growth strategy.
