Al Hassan Ghazi Ibrahim Shaker Co, a Saudi leading importer, manufacturer and distributor of air conditioners and home appliances, and LG Electronics have expanded their long-term strategic partnership through a new supply agreement.
The new agreement will bring home appliance and home entertainment products (namely televisions, refrigerators, washing machines, dryers, dishwashers and microwave ovens) to the Saudi market.
The supply agreement, coming into effect on January 1, will allow Shaker to bring LG’s entire product range to the market as well as advance its comprehensive retail and e-commerce operations across Saudi Arabia.
CEO of Shaker Group, Mohammed Ibrahim Abunayyan, said: “This is a key milestone in our long-term partnership as we continue to support our shared ambitious growth plans for the kingdom to grow local talent, optimise local technologies and deliver innovative products that meet the needs of consumers.
“The agreement is also a major step in expanding Shaker’s portfolio mix to ensure that we cater to the growing demand for high-quality home appliances and home entertainment products in Saudi Arabia. Importantly, our shared approach to offer energy-efficient products and maximise local content is also aligned with the kingdom’s vision and journey to net zero.”
Shaker has been in collaboration with LG for more than 20 years as the sole distributor of LG air conditioners in Saudi Arabia. So far, the joint venture has culminated in the establishment of an air conditioning factory with a capacity of one million units.
According to a recent study by Report Ocean, a market research firm, Saudi Arabia’s air conditioner market is forecast to grow at a compound annual growth rate of 4 per cent till 2030. This rapid growth is attributed to the rising number of residential and commercial structures and heightened concerns about scorching heat.
