DHAHRAN: Food manufacturer PepsiCo will offer more leadership roles to Saudis, its regional CEO pledged at the inauguration of the SR300 million ($79.97 million) expansion of its Dammam facility.
Speaking to Arab News, Ahmed El-Sheikh explained how the company supports the Kingdom’s Vision 2030 economic diversification plan through three main areas — using local resources, Saudization, and increasing exports.
The announcement came during a visit to the site by Minister of Industry and Mineral Resources Bandar Alkhorayef, who praised the facility’s contribution to job creation, export growth, and the overall development of the food manufacturing sector in Saudi Arabia.
The site serves as a key hub in the region, which supplies local markets and exports products to 20 countries across the Middle East.
The PepsiCo MENAP CEO said: “We’re proud to say that 85 percent of our workforce at the Dammam plant are Saudi nationals, one of the highest rates across any of our facilities in the region. With 280 employees currently, this is just the beginning. We plan to grow even further.”
He added: "As we move toward greater digitization and automation, we’re also opening up more opportunities for Saudis to step into technical and leadership roles.”
Recent regulatory changes, which have been made possible through collaboration with the Kingdom’s Ministry of Environment and Agriculture, now permit PepsiCo to utilize locally grown potatoes for export.
This development has been described by Alkhorayef as a “significant milestone” for both local farming and policy reform.
“It demonstrates how we’ve been able to work with PepsiCo over the last few years to ensure the entire supply chain, from farming to production and export, is well managed,” the minister told Arab News.
“As a result of our success working as a team, we were able to amend the policy so that PepsiCo can now use Saudi grown potatoes for export,” he added.
Bandar Alkhorayef cutting the ribbon on the Dammam facility. Supplied
Sustainability and resource efficiency were focal points during the visit, and Alkhorayef noted that the Kingdom now holds “a record in terms of water efficiency in potato cultivation,” a development he called inspiring, not only locally, but globally.
The Dammam plant sources 100 percent of its potatoes from Saudi farms, and uses local materials for secondary packaging, with 70 percent of primary packaging now locally sourced, a percentage PepsiCo aims to push to full localization.
PepsiCo operates in the Kingdom across 86 locations and employs nearly 9,000 people through direct and partner operations.
The company has opened a new regional headquarters in Riyadh’s King Abdullah Financial District, which will oversee operations across the Middle East, North Africa, and Pakistan, aligning with Saudi Arabia’s Regional Headquarters Program.
Further investment is also planned, and El-Sheikh said: “In addition to the SR300 million we’ve just invested in the Dammam plant, we’re preparing to open a state-of-the-art R&D facility in Riyadh in just two months’ time.”
The center will cost SR30 million and serve as a hub for product and packaging innovations in the Gulf Cooperation Council region, according to a statement from PepsiCo released in April.
When it comes to employment, Alkhorayef stressed that Saudization is driven by data and standards.
“This plant is a great example. It has around 85 percent Saudization, and female participation is about 22–23 percent, with more than 25 percent women in the plant workforce itself. That’s a significant achievement.”
He added that the government takes a comprehensive approach to measuring local content, and went on to say: “But measurement is not the goal, it’s a baseline. The real goal is to use it as a foundation to increase both local sourcing and hiring.”
The Dammam plant is one of PepsiCo’s most advanced in the region, and features energy efficient heating, ventilation, and air conditioning systems, solar panels generating 510 megawatt-hour yearly, and uses recycled water in its processing systems.
These investments align with the sustainability goals in the Kingdom’s National Industrial Strategy.
