US multinational food and beverage giant PepsiCo announced the launch of a new research and development center in Riyadh, as part of its strategic expansion across the Middle East.
With an investment of SAR 30 million (approximately $8 million), the center will be the largest of its kind in the Gulf region and will focus on developing new products tailored to local and regional consumer preferences.
The announcement came during the inauguration of PepsiCo’s new regional headquarters in the Saudi capital, underscoring the company’s long-term commitment to the Kingdom. Since 2017, PepsiCo has invested SAR 9 billion ($2.4 billion) in Saudi Arabia’s agriculture and food industries.
The company has grown its operational footprint to 86 sites and, in collaboration with local partners, has helped generate approximately 9,000 jobs—highlighting its role in advancing economic, industrial, and social development across the Kingdom.
Ahmed El-Sheikh, President and General Manager of PepsiCo Foods for the Middle East, North Africa, and Pakistan, told Asharq Al-Awsat that PepsiCo is deeply engaged in the agriculture, manufacturing, and trade sectors.
“We are investing in expanding agricultural output, and our Lay’s potato chips are now 100% locally sourced. Through modern irrigation techniques, we’ve also reduced agricultural water consumption by 22% in recent years,” he said.
El-Sheikh revealed that PepsiCo has committed SAR 300 million to its Dammam-based factory and an additional SAR 300 million to its new regional office and expanded R&D operations. Several of the company’s products manufactured in Saudi Arabia are now exported to Gulf and Levant markets.
“Choosing Saudi Arabia was a natural move, as it is the largest economy in the Middle East,” he said. The company worked closely with key ministries—including investment, industry, and environment—to facilitate the launch of its new headquarters, he went on to say.
The Riyadh office will oversee operations across the Gulf and Africa. El-Sheikh noted that PepsiCo had received wide-ranging support from the Saudi government, citing recent regulatory reforms that have made the investment climate increasingly favorable. Saudization within the company has reached 50% across all departments.
Mohamed Shelbaya, PepsiCo’s General Manager for Beverages in MENA, said Vision 2030 continues to draw major foreign investments by eliminating barriers, updating regulations, and offering incentives. “Saudi Arabia offers one of the region’s strongest investment cases, thanks to its large population, young demographic, and rapidly growing economy,” he stressed.
Shelbaya also spoke on PepsiCo’s commitment to innovation amid growing competition in the local market. “We are opening an R&D division to create new flavors that suit Saudi tastes, with potential for global expansion,” he said. “We’re also working with the government on localizing manufacturing inputs to lower costs and increase local investor participation.”
The inauguration of PepsiCo’s new regional headquarters in Riyadh.
