Saudi Arabia Launches New Industrial Projects in Eastern Province

Eastern Province Governor, Industry Minister review model of new projects – SPA
Eastern Province Governor, Industry Minister review model of new projects – SPA
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Saudi Arabia Launches New Industrial Projects in Eastern Province

Eastern Province Governor, Industry Minister review model of new projects – SPA
Eastern Province Governor, Industry Minister review model of new projects – SPA

Saudi Arabia inaugurated new industrial projects in Dammam on Thursday, as Eastern Province Governor Prince Saud bin Naif opened two major facilities in the city’s First and Second Industrial Zones.

The launch was attended by Industry and Mineral Resources Minister Bandar Alkhorayef, who also chairs the Saudi Authority for Industrial Cities and Technology Zones (MODON), and MODON CEO Majed Al-Argoubi.

Prince Saud highlighted the rapid growth in the Kingdom’s industrial sector, attributing it to strong government backing aligned with Vision 2030 objectives to enhance local content, boost competitiveness, and solidify the Eastern Province’s status as a key industrial hub.

Multi-Storey and Ready-Built Factories

The projects include an eight-storey multi-purpose factory complex in Dammam’s First Industrial City, housing 78 industrial units ranging between 156 and 251 square meters. The facility aims to support small and medium enterprises (SMEs) and entrepreneurs with modern infrastructure, consultancy, and training services in a flexible environment designed to foster expansion and innovation.

In the Second Industrial City, Prince Saud also inaugurated a ready-built factory project comprising 84 units with floor spaces of 700 and 1,500 square meters, spanning more than 92,000 square meters in total.

This development targets light industries, offering opportunities for investors in sectors such as food processing, pharmaceuticals, medical equipment, electrical goods, electronics, and 3D printing.

Among the newly opened projects was a production plant for food and beverage giant PepsiCo. Speaking to Asharq Al-Awsat, Ahmed El-Sheikh, PepsiCo’s President for the Middle East, North Africa, and Pakistan, said the company’s latest investment reflected growing confidence in the Saudi market, fueled by Vision 2030 reforms.

“Saudi Arabia has undergone a remarkable transformation in recent years, making it a highly competitive and attractive investment destination,” he said. “Modernized regulations, streamlined procedures, and robust incentives have opened the door to greater growth and innovation.”

El-Sheikh noted that PepsiCo’s recent expansions—including its Dammam plant and the launch of a regional headquarters in Riyadh—underscore the Kingdom’s strategic role in the company’s regional operations.

The Dammam factory is now one of PepsiCo’s most advanced production sites in the region, with plans to export more than 8,600 tons of products across the Middle East this year.

Boost from Logistics and Tech Infrastructure

“Logistical and infrastructure upgrades under Vision 2030 and the National Industrial Development and Logistics Program (NIDLP) have significantly improved our operational efficiency,” El-Sheikh said.

He cited the implementation of technologies such as a Warehouse Management System (WMS) and a Transport Control Tower (TCT), enabling real-time tracking, better inventory control, and lower operating costs. These advances have enhanced PepsiCo’s delivery speed to regional markets and improved customer experience.

Saudi Arabia’s geographic location also plays a pivotal role, enabling efficient distribution via well-developed land, sea, and air networks.

The Dammam facility has achieved a 84.3% Saudization rate, with women making up more than 21% of the workforce. The expansion has created 30 new jobs in the supply chain, offering fresh opportunities for Saudi youth.

PepsiCo sources 100% of the potatoes used in its snack products from Saudi farms, reinforcing local food security and encouraging sustainable agricultural practices, such as drip irrigation, which has reduced water consumption by 30% compared to 2015 levels.

The company also procures most of its packaging materials domestically, supporting local manufacturers and bolstering the SME ecosystem.

Focus on Innovation and Industry 4.0

“The Saudi snack food market is highly competitive and constantly growing, which pushes us to keep innovating and meeting evolving consumer demands,” El-Sheikh added.

PepsiCo is also integrating Industry 4.0 technologies—including advanced digital systems, solar panels, and water recycling solutions—to enhance operational efficiency and minimize environmental impact.

The latest expansion, valued at SAR 300 million ($80 million), has increased the plant’s production capacity by 19,000 metric tons. The company plans to build on this momentum by boosting local sourcing, improving operational performance, and expanding its use of smart manufacturing technologies.

 

 



Foreign Investors Consolidate their Bets on Saudi Arabia as Economic Reforms Gather Pace

The King Abdullah Financial District in Riyadh. (SPA)
The King Abdullah Financial District in Riyadh. (SPA)
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Foreign Investors Consolidate their Bets on Saudi Arabia as Economic Reforms Gather Pace

The King Abdullah Financial District in Riyadh. (SPA)
The King Abdullah Financial District in Riyadh. (SPA)

Saudi Arabia is no longer just an oil-price bet for global investors. It is becoming a core emerging-market play. That is the view of Emmanuel Laurina, head of Middle East, Africa, and official institutions at State Street, one of the world’s major financial services and asset management firms.

Speaking to Asharq Al-Awsat, Laurina said a structural shift is reshaping how global institutions view the Kingdom, and why State Street is placing a major bet on its market.

Laurina explained that Saudi Arabia has moved from an oil-linked allocation to a central component of emerging-market portfolios.

The shift is being driven by a broader range of investable sectors, particularly finance, energy, and raw materials, giving investors real diversification in a world where many emerging markets are dominated by technology, he stressed.

Saudi Arabia’s inclusion in major global equity and bond indexes has helped anchor foreign inflows and strengthen the market’s role in international allocations, he said. Vision 2030 reforms have also widened opportunities beyond oil.

What is drawing investors now?

Laurina said market liberalization and the opening of share trading to foreign investors through the development of the Saudi Exchange, Tadawul, have helped attract liquidity and deepen international participation.

He also pointed to Saudi Arabia’s push into artificial intelligence and digital infrastructure as the Kingdom seeks strategic partnerships with major global technology companies.

In fixed income, Laurina said Saudi government bonds carry a strong A+ credit rating and offer a positive yield spread over US Treasuries, making them attractive for investors seeking dollar-denominated diversification.

Access has also improved sharply, he said. The abolition of the qualified foreign investor regime and the shift toward direct ownership of listed securities mark a major step forward.

Still, some structural limits remain. These include foreign ownership caps at individual and aggregate levels, and the need to trade through local brokers. Laurina said the listing of foreign exchange-traded funds in the Kingdom remains only partly developed because Saudi Arabia’s domestic market-making ecosystem is still limited.

New fund targets Saudi equities

Laurina said State Street recently launched an exchange-traded fund in partnership with the Saudi Public Investment Fund, giving international investors access to Saudi equities through a systematic active strategy that seeks to beat the benchmark across full market cycles.

The launch reflects rising client demand and a clear shift in the Saudi market’s composition, away from oil stocks and toward sectors such as healthcare, utilities and technology, he went to say.

ETFs, he said, are only one part of a wider ecosystem that includes institutional mandates, strategic partnerships, index-driven flows and growing activity in private markets, especially in Vision 2030 priority sectors.

Laurina said the Middle East and Africa are central to State Street’s future growth strategy.

The strategy rests on three pillars: building institutional asset classes in the Middle East and North Africa, internationalizing Sharia-compliant portfolios, and meeting growing demand for regionally focused investment solutions.

Riyadh became State Street’s 11th global investment center in 2024, he said, as the company continues to expand its local investment and research team.

Laurina said Saudi Arabia is now a pivotal market and a key growth engine in State Street’s Middle East and Africa strategy.


Standard Chartered CEO Seeks to Reassure Staff over AI-linked Job Cuts

FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa
FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa
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Standard Chartered CEO Seeks to Reassure Staff over AI-linked Job Cuts

FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa
FILED - 11 January 2012, China, Hong Kong: FILE PHOTO - A general view of the facade of Standard Chartered Bank branch in Hong Kong. Photo: Jens Kalaene/dpa-Zentralbild/dpa

Standard Chartered CEO Bill Winters sought to assuage staff concerns on Wednesday, a day after saying that the bank will cut thousands of jobs over the next four years as it moves to replace "lower-value human capital" with technology.

"Many of you will have seen media coverage following the Investor Event in Hong Kong, particularly the reporting around automation, AI, and workforce changes," Winters said in a memo to the bank's ⁠staff reviewed by ⁠Reuters.

"I know this may be unsettling when reduced to simple headlines or a quote out of context," he said.

A spokesperson for the bank confirmed the memo's content.

StanChart said on Tuesday it would cut 15% of ⁠its corporate function roles by 2030, which, according to a Reuters calculation, would result in nearly 8,000 redundancies out of its more than 52,000 staff in such roles.

The bank cited AI as a driver to slim its operations in its quest to increase profitability and tackle competition.

"It's not cost-cutting. It's replacing in some cases lower-value human capital with the financial capital ⁠and ⁠the investment capital we're putting in," Winters said on Tuesday.

In his memo to staff on Wednesday, Winters said the bank had been open that its workforce will evolve.

"Some roles will reduce in number, some will change, and new opportunities will emerge. We will continue to prioritize investment in reskilling and redeployment wherever we can," he said.

"Where changes do happen, we will handle them with thought and care," he added.


Ukraine Ally Britain Eases Sanctions on Russian Oil as Fuel Prices Surge Over Iran Conflict

A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)
A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)
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Ukraine Ally Britain Eases Sanctions on Russian Oil as Fuel Prices Surge Over Iran Conflict

A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)
A seized suspected Russian oil taker by the French navy is photographed in the Mediterranean Sea in Fos-sur-Mer, southern France, on Jan. 26, 2026. (AP)

The UK government has quietly watered down sanctions on Russian oil in an effort to shelter Britons from the cost-of-living squeeze triggered by the closure of the Strait of Hormuz.

A trade license that came into effect Wednesday permits the import of Russian oil that has been refined into jet fuel and diesel in third countries, such as India and Türkiye.

The US-Israeli war on Iran and Iran's closure of the strait, through which about a fifth of the world's oil usually passes, has sent fuel prices soaring around the world and sparked concerns about a shortage of jet fuel.

UK Treasury minister Dan Tomlinson said the changes are “for a time limited period and on a very specific issue.”

Britain has been one of Ukraine's strongest allies since Russia's full-scale invasion in 2022, and the government insist its sanctions against Russia remain among the toughest in the world.

But lawmaker Emily Thornberry, who chairs Parliament’s Foreign Affairs Committee, said Ukrainians would “feel very let down” by the move. She said Ukraine’s allies should keep squeezing Russia’s oil industry, because it “is absolutely crippling their economy.”

The US has also eased Russian sanctions. Earlier this week, Treasury Secretary Scott Bessent extended a 30-day sanctions waiver allowing the purchase of Russian oil shipments already at sea.

On Tuesday, finance ministers from the US, Britain and the other Group of Seven wealthy nations issued a joint statement reaffirming “our unwavering commitment to continue to impose severe costs on Russia in response to its continued aggression against Ukraine.”