Following LG Electronics, Samsung Electronics has entered into a strategic partnership with Al-Bawani, one of Saudi Arabia’s largest construction firms. This collaboration is expected to pave the way for Samsung’s participation in major infrastructure projects such as NEOM City and the Red Sea Development, both key initiatives under Saudi Arabia’s Vision 2030. Samsung also plans to implement its digital technologies in these future-focused developments.
According to foreign media outlets including Index Economic and Shafaq News on June 19, Samsung Electronics Saudi Arabia (SESAR) recently signed a memorandum of understanding (MOU) with Al-Bawani to cooperate on smart infrastructure development.
Under the MOU, SESAR will take part in Al-Bawani’s large-scale real estate projects by providing smart solutions to support the creation of sustainable cities and buildings.
Established in 1991, Al-Bawani is owned by the Al Shawaf family, which has close ties to the Saudi royal family. The company is currently leading a massive mixed-use development near Diriyah, a historic city in Saudi Arabia, featuring luxury hotels, golf courses, and equestrian facilities. It has also secured a contract from Saudi Entertainment Ventures (SEVEN) — a subsidiary of the Public Investment Fund (PIF) — to build an entertainment hub, and is actively involved in the NEOM and Red Sea projects. In August of last year, the company formed a partnership with LG Electronics to incorporate LG’s digital technologies into its developments.
Samsung views this partnership as a strategic opportunity to expand its presence in Saudi Arabia. Vision 2030, spearheaded by Crown Prince Mohammed bin Salman, is a national plan to diversify the economy, with far-reaching economic impact. Faisal Al-Ibrahim, Saudi Arabia’s Minister of Economy and Planning, stated in February that infrastructure investment could reach $1 trillion by 2030. To accelerate major projects, the PIF alone has announced plans to invest $267 billion this year, drawing global attention to Saudi Arabia’s growth potential fueled by oil wealth.
Samsung has been actively pursuing various collaborations in support of Vision 2030. In March last year, the company signed an MOU with the Saudi Data and Artificial Intelligence Authority (SDAIA) — an agency directly overseen by the Crown Prince — to cooperate in digital business initiatives. In November, Samsung also partnered with the Misk Foundation to join the Misk City project, which aims to position Saudi Arabia as a regional hub for education and culture.
Hyun-dong Lee, head of SESAR, said, “We are pleased to partner with Al-Bawani, a company with a strong track record in delivering major Saudi projects. We aim to expand the application of Samsung’s smart and sustainable solutions across Saudi Arabia’s future infrastructure developments.”
