PepsiCo plans to elevate the roles of Saudis within its organization, as per announcements made by its regional CEO.
In a significant move towards economic diversification and sustainability, PepsiCo has announced the expansion of its Dammam facility in Saudi Arabia at a cost of SR300 million ($79.97 million). This development, overseen by PepsiCo's regional CEO, Ahmed El-Sheikh, aims to strengthen PepsiCo's commitment to the Kingdom's Vision 2030 and National Industrial Strategy.
The expanded facility will focus on Saudization, employing around 85% Saudi nationals, including efforts to place more Saudis in technical and leadership roles. This move is expected to increase the workforce beyond the current 280 employees, with a notable increase in female participation, currently at about 22-23%.
The expansion also includes the implementation of energy-efficient systems and the installation of solar panels, generating 510 megawatt-hours yearly, and the use of recycled water in its processing systems. These measures align with PepsiCo's sustainability goals and the Kingdom's comprehensive approach to measuring local content, which serves as a foundation to increase both local sourcing and hiring.
PepsiCo sources 100% of its potatoes for the Dammam plant from Saudi farms, a development that has been described as a "significant milestone" by Minister of Industry and Mineral Resources Bandar Alkhorayef. This development, allowing PepsiCo to use Saudi-grown potatoes for export, has been made possible through recent regulatory changes, made possible through collaboration with the Kingdom's Ministry of Environment and Agriculture.
The Dammam facility serves as a key hub in the region, supplying local markets and exporting products to 20 countries across the Middle East. The use of advanced technologies like a Warehouse Management System (WMS) and Transport Control Tower (TCT) will optimize operations and increase exports, targeting over 8,600 tons of products annually.
In addition to the expanded Dammam facility, PepsiCo is planning to open a state-of-the-art R&D facility in Riyadh in two months, costing SR30 million. This facility will serve as a hub for product and packaging innovations in the Gulf Cooperation Council region. Furthermore, a new regional headquarters for PepsiCo has been opened in Riyadh's King Abdullah Financial District, overseeing operations across the Middle East, North Africa, and Pakistan.
This strategic approach integrates job creation for Saudis, enhanced use of local inputs, and expanded exports through investment in state-of-the-art production and supply chain technologies within Saudi Arabia's strategic industrial growth framework. The Dammam facility, already one of PepsiCo's most advanced in the region, is poised to play a crucial role in Saudi Arabia's development as a regional food manufacturing and export hub.
[1] Al-Arabiya, "PepsiCo expands Saudi facility, boosts local content," 2021. [2] Arab News, "PepsiCo to open R&D facility in Riyadh," 2021. [3] Gulf Business, "PepsiCo opens regional headquarters in Riyadh," 2021.
- The expansion of PepsiCo's Dammam facility in Saudi Arabia, a key hub, signifies a significant step towards the Kingdom's Vision 2030 and National Industrial Strategy.
- The move towards Saudization in the expanded facility aims to employ around 85% Saudi nationals, including more Saudis in technical and leadership roles, boosting the local economy.
- Energy-efficient systems and solar panels will be implemented in the expanded facility, contributing towards PepsiCo's sustainability goals and supporting the Kingdom's commitment to environmental preservation.
- PepsiCo's Dammam plant now sources 100% of its potatoes from Saudi farms, a development that aligns with the Kingdom's efforts to increase local content and exports.
- In addition to the expanded Dammam facility, PepsiCo is set to open a new R&D facility in Riyadh, promising innovations in product and packaging within the Gulf Cooperation Council region.
- The new regional headquarters for PepsiCo, overseeing operations across the Middle East, North Africa, and Pakistan, has been opened in Riyadh's King Abdullah Financial District, reflecting the company's commitment to the region's growing business and culture.
