How PepsiCo is helping Saudi Arabia improve irrigation, cut water use

Eugene Willemsen, PepsiCo CEO Africa, Middle East, South Asia, spoke about the need to future-proof organizations from climate change and pandemics. (Supplied)
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Updated 24 April 2022
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How PepsiCo is helping Saudi Arabia improve irrigation, cut water use

RIYADH: As Saudi Arabia grapples with water scarcity, PepsiCo is leaving no stone unturned to solve the sustainability problem in the region. The company has successfully partnered with farmers to cut 25 percent of their water utility by introducing extraordinary irrigation techniques in the last few years.

“In 2022, we hope to achieve our 100 percent water replenishment target in Riyadh, and in 2023 we aim to be net water positive across the Kingdom,” Eugene Willemsen, PepsiCo CEO for Africa, the Middle East and South Asia, told Arab News. “Effectively, our ambition is to bring back to the community the same amount of water we consume throughout our food manufacturing process.”

Willemsen noted that water scarcity in the Gulf Cooperation Council had been a significant item on the region’s agenda. It has been trying to find an effective solution to this problem.

“The scarcity of water in the region, coupled with the arid climate, means that food security is a priority for the GCC countries. Governments and communities need to find creative and sustainable means of providing food to the people of this region,” he said.

Willemsen indicated that during the pandemic, PepsiCo saw several GCC countries effectively mitigate the risks of food supply shocks.

“The Kingdom specifically was able to work closely with the food and beverage industry and leverage strong partnerships with the government to ensure minimal disruption and shortages during the pandemic,” he noted.




Eugene Willemsen, PepsiCo CEO Africa, Middle East, South Asia

Countering challenges

According to the UN, more than half the planet’s fertile topsoil is now degraded. Asked how the food industry in the Middle East can counter challenges posed by this, Willemsen replied: “We have been doing this by partnering with our farmers and coming up with regenerative solutions that can help support the Middle East’s sustainability agenda.”

He added: “In response to the challenges posed by dry climates in the Middle East in terms of soil quality, we have been prioritizing the efficient use of advanced irrigation solutions. One such example has been our efforts toward achieving agricultural water efficiency in the Kingdom for the supply of potatoes used in the supply chain for the snacks business.

“We have done this by implementing storage of potatoes for summer use, introducing more water-efficient potato varieties, improving irrigation efficiency for 1,000 hectares, and expanding efficient drip irrigation methods to 500 hectares.”

With the installation of efficient irrigation technology at various growers in the Wadi Dawasir region in the fourth quarter last year, PepsiCo aims to replenish nearly 65 percent of the total water it consumes in Saudi Arabia in 2022. 

Meaningful initiative

Elaborating on PepsiCo’s recently launched initiative, Food for Thought, Willemsen explained its aim is to forefront sustainability and drive meaningful change. “The Food for Thought initiative is intentionally designed differently from the traditional setup used for thought leadership,” he added. “We have redesigned conference settings and opened access to stakeholders beyond the usual public and private players.”

This inclusive platform is open and interactive, intending to democratize conversations about food by bringing together multiple stakeholders from across the food chain.

After the success of the inaugural event in Dubai, PepsiCo is looking forward to organizing the next edition in Saudi Arabia within the next six months. “We will build on these events and the ideas and emotions they generate to drive our ultimate objective of putting sustainable food at the forefront of our minds in the region as we strive for a better tomorrow,” Willemsen said.

The company will liaise with the larger community to support further action and trigger collaborations. 

“We pieced together ideas on subjects that were perhaps not together before. Potential partnerships have unlocked, and conversations have begun. Overall, we are happy to have created this opportunity and look forward to furthering the impact in our next session,” informed Willemsen.

Food sustainability

According to the top executive, the food and beverage industry is at the heart of the transition to a sustainable food system.

“Through partnerships and innovations, the industry has to cater to consumer demands and needs within the sustainability model. Well-informed and collaborative partnerships are critical to paving the way forward. As the industry moves toward embracing food sustainability, multi-stakeholder partnerships play a role in driving impactful results — be it with internal audiences, consumers, industry players, or local governments,” he added.

Willemsen stressed that with emerging concerns related to climate change and a post-pandemic recovery in progress, there is a growing emphasis on reusing, reinventing, and recycling for a more resilient circular economy.

He added: “Our focus has been on positive agriculture and working toward water sustainability. To do this, we have been implementing the latest food technologies across our value chain, partnering with farmers to apply best practices and introduce more innovative ways of working. We have also been leveraging our global and local stakeholder base to change behavioral patterns by spreading awareness of impactful water-saving tactics and regenerative farming practices.”

Additionally, the company has been ensuring water access for some of its communities by implementing replenishment tactics.

“Our ambition is to become net water positive by 2030, reducing absolute water use and replenishing at least 100 percent of the water used into the local watershed,” Willemsen explained.

By all accounts PepsiCo, which has two food manufacturing sites in Riyadh and Dammam, has implemented advanced technologies and disrupted current practices with a sustainable approach led by research and development.

 


Most Gulf shares gain on US-China tariff deal; Egypt snaps losing streak

Updated 14 sec ago
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Most Gulf shares gain on US-China tariff deal; Egypt snaps losing streak

LONDON: Gulf equities ended higher on Monday as the US and China agreed to temporarily slash harsh reciprocal tariffs while US President Donald Trump’s planned visit to Saudi Arabia and Gulf states on Tuesday also raised investor sentiment.

The US will cut extra tariffs it imposed on Chinese imports in April to 30 percent from 145 percent and Chinese duties on US imports will fall to 10 percent from 125 percent, the two countries said on Monday following talks in Geneva. The new measures are effective for 90 days.

Saudi Arabia’s benchmark stock index rose 1.3 percent, the sharpest rise in a month with almost all sectors in the green.

Saudi Aramco gained 2.2 percent after the world’s top oil exporter reported a net profit of SR97.54 billion ($26.01 billion) in the first quarter on Sunday, beating a company-provided median estimate from 16 analysts of $25.36 billion.

Among other gainers, National Industrialization Co. rose 1.1 percent after the petrochemical company posted a quarterly net profit compared to a net loss a year earlier.

Meanwhile, Saudi Arabia and the US are set to discuss a number of blockbuster economic deals during Trump’s visit on Tuesday, with the US poised to offer Saudi Arabia an arms package worth well over $100 billion, sources have told Reuters.

The Qatari benchmark index continued its three-session winning streak and rose 0.7 percent, with most stocks posting gains.

Qatar National Bank, the region’s largest lender, gained 2 percent and Qatar Electricity and Water climbed 4 percent, its biggest rise in more than a year.

Qatar’s main electricity and desalinated water supplier, QEWC said on Monday that Qatar General Electricity and Water Corporation ‘Kahramaa’ has signed a strategic agreement with QEWC, QatarEnergy, and Sumitomo Corporation to build the Ras Abu Fontas Independent Water and Power Facility at a cost of 13.5 billion Qatari riyals ($3.71 billion).

Dubai’s benchmark stock index was up 0.4 percent, helped by a 7.3 percent rise in Parkin and a 2.8 percent gain in Talabat Holding.

The online food ordering company Talabat reported a first-quarter net profit of $103.3 million. The Abu Dhabi benchmark index edged up 0.1 percent with Aldar Properties gaining 1 percent and Fertiglobe rising 2.2 percent.

The fertilizer producer has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia Pty Ltd.

Outside the Gulf, Egypt’s blue-chip index advanced 0.5 percent after three consecutive sessions of losses. Commercial International Bank rose 1.1 percent and Abu Dhabi Islamic Bank Egypt climbed 3.6 percent.

The lender reported a 43 percent rise in first quarter net profit.


Aviation industry faces supply chain shifts amid global tariff talks, flyadeal CEO says

Updated 17 min 11 sec ago
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Aviation industry faces supply chain shifts amid global tariff talks, flyadeal CEO says

RIYADH: Global tariff discussions are already beginning to reshape supply chains in the aviation industry, even before formal policies are enacted, a senior executive has said. 

Speaking at the Future Hospitality Summit 2025 in Riyadh, Steven Greenway, CEO of Saudi Arabia’s low-cost airline flyadeal, explained that as aircraft components are sourced globally, geopolitical shifts are likely to impact logistics, manufacturing, and planning across the sector. 

His comments came just hours after the US and China agreed to temporarily reduce tariffs, with the White House’s levies on most imports from the Asian country dropping from 145 percent to 30 percent, and Beijing’s duties on US goods falling from 125 percent to 10 percent. The move aims to ease trade tensions and allow three more months for negotiations. 

Reflecting on the shift in the global economic order, Greenway said: “What I’m predominantly focused on though is not so much tariffs at the moment, it is more the supply chain.” 

He added: “Interestingly, tariffs are impacting the supply chain ... even before the monetary effect of tariffs is coming, it’s connecting the supply chain because the supply chain is now moving around to try to accommodate and avoid tariffs.” 

The CEO said: “There will be an impact. We’re already seeing discussions around an impact. The magnitude, the scale, I really don’t know.”

Greenway stated that some components of his airline’s engines are made in the US, while the airframes are built in Europe.

While broader trade dynamics present uncertainties, flyadeal is seeing clear internal gains from its latest technology adoption. The airline cut call volume by 80 percent overnight after launching an artificial intelligence-powered chatbot just one month ago, Greenway said. 

“We’re quite late to the chatbot arena ... but we took our time in terms of the technology, the learning, the database that underpins that and so forth,” he explained. “That delay perhaps. or cautiousness, has paid off because we’ve actually deployed something that takes in the learnings of many other airlines.” 

The chatbot currently supports interactions and bookings, and will soon be expanded with transactional capabilities. Greenway emphasized that AI is being used as a support system, not a decision-maker. 

“What we’re doing is we’re using AI not as the decision tool, but a decision support tool; so, keeping the human in the mix,” he added. 

Flyadeal’s digital transformation aligns with Saudi Arabia’s Vision 2030 plan to grow its aviation sector and boost tourism to 150 million annual visitors. The carrier plans to triple in size, expanding to more than 100 destinations with a fleet of over 100 aircraft and a workforce exceeding 4,000. 

Also at the summit, Julien Renaud-Perret, executive director of hospitality at New Murabba Development Co., offered details on Riyadh’s upcoming mega project, the Mukaab. The immersive, cube-shaped landmark is set to host up to 27,000 visitors simultaneously when it opens. 

“Our goal ... is to be able to transport people through technology through screens and holograms into a different world,” Renaud-Perret said. “It could be the ocean, could be Jurassic Park, could be the desert, could be the space.” 

He added that the Mukaab is envisioned to be “an iconic landmark of the city” on par with the Eiffel Tower or Empire State Building. 

The Future Hospitality Summit, running from May 11 to 13, brings together over 1,000 global tourism leaders, investors, and hotel operators. 

Backed by strategic partners including NEOM, Red Sea Global, and the Tourism Development Fund, the event highlights Saudi Arabia’s rapid transformation into a leading global destination. 


IHG to introduce 15,000 additional keys in Saudi Arabia by 2030: top official

Updated 12 May 2025
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IHG to introduce 15,000 additional keys in Saudi Arabia by 2030: top official

RIYADH: UK multinational hospitality giant IHG Hotels and Resorts is planning to add an additional 15,000 rooms in Saudi Arabia, as it eyes opening another 50 hotels in the Kingdom by 2030, according to an official. 

Speaking to Arab News on the sidelines of the Future Hospitality Summit in Riyadh on May 12, Maher Abou Nasr, vice president of operations for IHG in Saudi Arabia, said that the company will add seven new hotel brands in the Kingdom, in addition to the existing six already operating in the country. 

Strengthening the hospitality sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030, as the Kingdom is steadily diversifying its economy by reducing its decades-long reliance on crude revenues. 

Ahead of the summit, FHS data revealed that Saudi Arabia is set to add 362,000 new hotel rooms by 2030 as part of its $110 billion hospitality expansion plans. 

“We have 45 hotels in the market now, and it includes Makkah, Madinah, Riyadh and all the tourism cities in the Kingdom. And that is close to 24,000 keys currently operating in the market. But our pipeline has 50 hotels. So, more hotels are coming to the market, with 15,000 keys that we are going to be introducing soon,” said Abou Nasr. 

He added: “We have six brands that are operating currently in the Kingdom, but we have seven brands in the pipeline. So we’re going to have 13 brands, in close to five years, that are going to be operating in the Kingdom.”

Abou Nasr further said that IHG is gearing up to meet the rising demand in Saudi Arabia’s hospitality sector, with the Kingdom gearing up to host major international events including Expo 2030 and the FIFA World Cup in 2034. 

Abou Nasr said that 49 percent of the company’s workforce are Saudi nationals, and the new hotel brands will help workers from the Kingdom explore more opportunities in the hospitality sector.

“Those Saudi youth who are going to be working in the Expo and the World Cup are people who are graduating today from high school. They are making their decisions on their career paths today, this year, last year, and in the coming year. So, in this period, we need to reach this pool of talent and attract them to the hospitality industry,” said Abou Nasr. 

“Today we have 49 percent Saudization. Close to 2,000 Saudi nationals work in our hotels, but we want to reach 6,000 by 2030 to be working for us,” he added. 

Abou Nasr added that IHG is getting sufficient support from the Kingdom’s Ministry of Tourism to attract Saudi talents to the company’s workforce. 

Meeting diversification of demand 

According to Abou Nasr, IHG is trying to cater to the needs of demand in different segments, such as midscale and upper midscale, in addition to the traditional luxury offerings provided by the hospitality group. 

“With all the changes that are happening in the Kingdom, we see a big diversification of demand. Not everybody wants to stay in luxury hotels all the time. Having said that, luxury remains our biggest part of the portfolio that’s coming — 60 percent of our pipeline hotels are in the luxury and lifestyle segments,” said Abou Nasr. 

He added: “However, we still see demand now that is coming into different segments, like the midscale and upper midscale. So, Holiday Inn Express is coming to the market, and we’re introducing Garner as well, sometime in the near future, to the Kingdom.”

On the first day of the FHS, IHG and Ashaad Co. signed an agreement to develop three new hotels in Saudi Arabia: Intercontinental and Voco in Alkhobar and Hotel Indigo in Jeddah. 

Citing a presentation made by real estate consultancy JLL at the summit, Abou Nasr said that Saudi Arabia had committed to adding 185,000 keys as part of its offering for FIFA World Cup 2034, and not all of these keys will be in luxury segments. 

Abou Nasr highlighted the growth of the hospitality industry in Saudi Arabia, and said that hotels in Riyadh and Jeddah have started to make profits within one or two months of starting operations. 

“In the past, that used to be a few months before we break even and then start ramping up toward more profits. Today, we are seeing a lot of hotels making profits from the first or second months,” said Abou Nasr. 

He added: “There’s a lot of demand that is happening in those cities. It depends on the location, the brand and the size of the hotel. But hotel investments are proving to be very profitable in this market.”

Maintaining competitiveness

During the interview, Abou Nasr said that IHG is committed to maintaining competitiveness in the market, as the company plans to add 50 new hotels in addition to the 45 already operating in the Kingdom. 

“We are actively working toward renovating many of those hotels that need renovation and bringing them up to speed to cater for the new travelers that are coming to Saudi Arabia,” he said. 

Abou Nasr added that IHG, during the recently concluded Arabian Travel Market, signed a memorandum of understanding with the Ministry of Tourism to collaborate around enhancing the guest experience when travelers come to Saudi Arabia. 

Abou Nasr further said that IHG is committed to maintaining sustainability as the world is trying to materialize the climate goals. 

“We’re working on introducing three energy conservation measures into our hotels that will take care of water conservation within our properties and energy conservation as well. In the future, there are a lot more initiatives to come. This is all guided by our journey to tomorrow, which are our sustainability initiatives at a corporate level,” he added. 

Combating challenges 

Abou Nasr said cooperation with the government has helped IHG to change challenges into opportunities. 

He added that completing the projects within the stipulated timeframes and renovating existing facilities are some of the challenges which are being faced by IHG. 

“We firmly believe that Saudi hospitality is delivered by Saudis. And we’re able now to go and talk to those Saudis at that young age to attract them to the industry with help from the government,” said Abou Nasr.


Saudi crown prince launches HUMAIN to position Kingdom as global AI hub 

Updated 12 May 2025
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Saudi crown prince launches HUMAIN to position Kingdom as global AI hub 

JEDDAH: Saudi Arabia’s Crown Prince has launched HUMAIN, a new artificial intelligence company aimed at developing Arabic large language models and establishing the Kingdom as a global hub for AI innovation and leadership. 

Backed by the Public Investment Fund, HUMAIN will operate across the entire AI value chain as an integrated technology firm, the Saudi Press Agency reported. 

HUMAIN’s creation aligns with the broader goals of Vision 2030, the Kingdom’s economic transformation plan, and underscores its ambition to lead in high-tech sectors. The company will support local innovation, develop intellectual property, and attract top global AI talent and investment. 

“Chaired by HRH the Crown Prince, HUMAIN will provide a comprehensive range of AI services, products and tools, including next-generation data centers, AI infrastructure and cloud capabilities, and advanced AI models and solutions,” stated the SPA report. 

“The company will also offer one of the world’s most powerful multimodal Arabic large language models,” it added. 

The firm is also set to drive adoption of AI technologies in key sectors such as energy, healthcare, manufacturing, and financial services. It will consolidate data center initiatives, oversee hardware procurement, and scale deployment of AI solutions regionally and globally. 

AI is expected to contribute SR58.8 trillion ($15.6 trillion) to the global economy by 2030, the Saudi Data and Artificial Intelligence Authority has projected. The sector is also forecast to generate 98 million jobs by 2025. 

PIF and its portfolio companies are actively working to build a thriving AI ecosystem, leveraging Saudi Arabia’s strategic location, economic growth potential, and rising demand for advanced AI research and innovation. 

The Saudi Co. for Artificial Intelligence, a PIF-owned entity established in 2021, serves as the fund’s AI and emerging tech arm, supporting national goals through solutions in smart cities, energy, healthcare, and finance. 

PIF’s strategy contributes to the Kingdom’s ambition of becoming a competitive global player in the digital economy, supporting economic diversification goals as outlined in Vision 2030, the SPA report said. 

In recognition of these efforts, Saudi Arabia ranked first globally in the 2024 Global AI Index for government AI strategy, affirming its leadership in this transformative sector.


Closing Bell: Saudi main index closes in green at 11,488

Updated 12 May 2025
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Closing Bell: Saudi main index closes in green at 11,488

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 142.01 points, or 1.25 percent, to close at 11,488.60.

The total trading turnover of the benchmark index was SR6.13 billion ($1.63 billion), as 216 stocks advanced, while only 28 retreated.

The MSCI Tadawul Index increased by 16.67 points, or 1.15 percent, to close at 1,468.46.

The Kingdom’s parallel market, Nomu, dipped, losing 80.32 points, or 0.29 percent, to close at 27,343.13. This comes as 45 stocks advanced, while 31 retreated.

The best-performing stock on the main index was Saudi Ceramic Co. with its share price surging by 9.95 percent to SR30.40.

Other top performers included Batic Investments and Logistics Co., which saw its share price rise by 7.76 percent to SR2.36, and Naseej International Trading Co., which saw a 7.39 percent increase to SR87.20.

The worst performer of the day was SHL Finance Co., whose share price fell by 3.92 percent to SR19.12.

Maharah Human Resources Co. and Almunajem Foods Co. also saw declines, with their shares dropping by 3.68 percent and 1.51 percent to SR5.50 and SR71.90, respectively.

On the announcements front, Arabian Centres Co. declared its interim financial results for the first three months of the year with net profit amounting to SR222.7 million, a 37.5 percent dip compared to the previous quarter.

The company attributed the decrease to a dip in net fair value gain of investment properties and a rise in the cost of revenues. Higher finance costs, driven by increased debt from development projects, also contributed to the decline.

Cenomi Centers’ shares on the main market traded 0.20 percent lower to reach SR20.08.

Retal Urban Development Co. also announced its financial results for the same period with its net profit dropping by 26.05 percent to SR68.13 million compared to the previous quarter.

The company credited the decrease mainly due to exit from real estate fund during the previous quarter.

Retal’s share price remained stable at SR17.04.

Saudi Awwal Bank announced its intention to issue US dollar-denominated additional tier 1 Capital Sustainable Sukuk through a private placement in Saudi Arabia and internationally. 

The issuance, part of the bank’s $5 billion sukuk program, aims to strengthen its capital base and support long-term strategic goals. 

Joint lead managers, including HSBC, Merrill Lynch, and Citigroup, will oversee the offering, an official statement on Tadawul said. The final terms and value of the sukuk will be determined based on market conditions, the statement added.

SAB’s shares on the main market traded 2.19 percent higher in today’s trading session to reach SR34.95.