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Eased Procedures Encourage Private Sector Investment in Saudi Military Industries

Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)
Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)
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Eased Procedures Encourage Private Sector Investment in Saudi Military Industries

Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)
Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)

The Saudi government offers a host of comparative advantages for military sector investors. From easy procedures to visas and licenses, Saudi authorities are keen on facilitating investment flow into the Kingdom’s defense industry.

Saudi Arabia’s developed customs services and digital technologies are factors for attracting investment as well.

A recent Riyadh Chamber of Commerce report recommended establishing industry-specific specializations in schools and universities across the Kingdom.

It also stressed the need for building partnerships with developed countries.

Raising more awareness of Vision 2030 programs for the Saudi military industry, creating military industry clusters, and establishing research centers specialized in developing technologies were also among the Chamber’s suggestions.

Encouraging and attracting researchers and scientists to upgrade technology was also proposed in the report.

Saudi Arabia has implemented a long-term strategy for some essential military industries. Moreover, it facilitates license issuing via e-platforms.

Saudi companies and institutions have developed solutions to overcome difficulties facing their investment journey in the Kingdom’s military sector.

Integration and transfer of expertise between the private and military sectors are among those solutions.

The companies also proposed that the state provide more financial support and facilities and select the most efficient companies to invest in the military sector.

According to the presented solutions, the Kingdom must invest in scientific research, assign a single legislative body, facilitate the issuance of necessary licenses, and streamline procedures.

Establishing industrial cities for the defense sector was also recommended. Local and international knowledge and technology must be used to support those cities.

Training national cadres in military investment is also vital.

Abdullah Al-Khorayef, Chairman of the Industrial Committee at the Chamber, confirmed that the Kingdom’s military industries provide an array of promising opportunities for the private sector.

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PepsiCo: $2.4 Billion Has Been Invested in Saudi Arabia

The inauguration of PepsiCo’s new regional headquarters in Riyadh.
The inauguration of PepsiCo’s new regional headquarters in Riyadh.
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PepsiCo: $2.4 Billion Has Been Invested in Saudi Arabia

The inauguration of PepsiCo’s new regional headquarters in Riyadh.
The inauguration of PepsiCo’s new regional headquarters in Riyadh.

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.