From energy and construction to advanced AI: Samsung Chairman Lee Jae-yong charts new growth engines in the Middle East

[Financial News] Lee Jae-yong’s on-the-ground management in the Middle East is seen as an effort to expand the business foundations built in the energy and construction markets into growth drivers for the age of artificial intelligence (AI). As oil-producing countries shift from oil-centered economies to advanced industries, Lee also focused on strengthening ties with top-level officials and turning business opportunities into concrete plans on the ground. His direct attention to employees safeguarding overseas operations amid geopolitical uncertainty is also seen as part of his recognition of the Middle East’s importance.

Samsung Electronics said on the 22nd that Lee visited the construction site of the Al Dhafra gas-fired power plant in Abu Dhabi, United Arab Emirates, on the 21st (local time).
The visit continues Lee’s emphasis on challenging management. On his first overseas trip after taking office as chairman in December 2022, he visited the construction site of the Barakah nuclear power plant in the UAE and urged the heads of Samsung’s Middle East subsidiaries at the time to “be bold and take on challenges.”
The message was to secure the next growth opportunities proactively while ensuring the stable execution of existing businesses. In the Middle East, Samsung’s business opportunities are expanding beyond large-scale construction and plant projects into AI infrastructure.
Analysts say synergies among Samsung Electronics, Samsung C&T and Samsung E&A are more necessary than ever, given that operating data centers requires large-scale power supplies in addition to semiconductors and telecommunications networks.
The 5-gigawatt (GW) AI data center project Stargate, which the UAE is pursuing, is seen as an example of investment in the Middle East shifting toward advanced industries. The 1-GW power infrastructure at the Al Dhafra power plant being built by Samsung C&T is also expected to provide a foundation for meeting the power demands of advanced industries in the future.
Samsung C&T has broadened its cooperation after taking part in construction of the Barakah nuclear power plant, signing a memorandum of understanding with the Emirates Nuclear Energy Corporation last July to jointly develop and invest in global nuclear power and small modular reactor (SMR) projects. Samsung E&A has also secured business footholds in both energy facilities and digital infrastructure, winning a TA’ZIZ methanol project in the UAE last year valued at at least 2.5 trillion won.

Lee Jae-yong is broadening cooperation through exchanges with key figures in the Middle East and leading Samsung’s global management.
In February 2019, Lee met Mohammed bin Zayed, then crown prince of Abu Dhabi, to discuss cooperation in semiconductors, 5G and AI. Later that month, he personally introduced semiconductor production lines and telecommunications equipment at Samsung Electronics Hwaseong Campus. He has also discussed cooperation in various fields, including construction, energy and smart cities, with Saudi Crown Prince Mohammed bin Salman.
These exchanges have gone hand in hand with visits to production and research and development sites. During the 2023 Chuseok holiday, Lee visited an R&D center in Israel, a TV and mobile phone factory in Egypt, and a tunnel construction site in Saudi Arabia, in that order.
Lee’s management approach, which emphasizes on-site engagement, has extended beyond the Middle East as he has assessed affiliates’ competitiveness firsthand—from technology development and product manufacturing to infrastructure construction—and explored ways to expand their businesses. In 2024, he visited a Samsung SDI battery plant in Malaysia and a multilayer ceramic capacitor (MLCC) production line at Samsung Electro-Mechanics in the Philippines.
Lee has also continued to encourage employees who support the execution of overseas businesses. As he connects the Middle East’s industrial transformation to new business opportunities, he is also focused on building the trust and capabilities of the on-site staff who will carry out that work.
After sending gifts to around 500 employees staying in three Middle Eastern countries and their families last March, Lee looked after 730 employees dispatched to nine Middle Eastern countries and their families on the 16th of this month. During this UAE visit, he ate with employees in the site cafeteria and listened to their working conditions and concerns.
[email protected] Kim Hak-jae Reporter