PepsiCo's investment in its Dammam potato production facility has increased to approximately $80 million, up from the previously announced $60 million, according to Ahmed Al-Sheikh, CEO and General Manager of the Food Segment for the Middle East, North Africa, and Pakistan. This adjustment aligns with the expanding Saudi market.
Since 2017, PepsiCo has invested $2.4 billion in Saudi Arabia's agricultural and food industries. The company has expanded to 86 operational sites and created over 9,000 jobs in the Kingdom, reflecting its efforts to support economic, industrial, and social development. In an interview with Argaam, Al-Sheikh noted that Saudi Arabia imports 80% of its food products, and Saudi Vision 2030 aims to enhance local production, with agriculture contributing SAR 109 billion ($29 billion) to the economy in 2023.
PepsiCo's investments in the Kingdom span agriculture, manufacturing, and commercial distribution. Al-Sheikh stated that 100% of the potatoes used are locally sourced. The company supports sustainable agriculture and invests in manufacturing, logistics, and supply chain infrastructure to boost local food production. Production capacities at Doritos potato and corn plants have expanded to serve both local and regional markets, including the Gulf and Levant countries.
Recently, PepsiCo invested an additional $8 million in a research and development center at its Riyadh headquarters, focusing on innovative local products, including snacks based on Saudi dates. Al-Sheikh emphasized that Saudi Arabia is a primary market globally, with a relatively low local consumption rate, presenting growth opportunities.
He stated, "Saudi Arabia is the largest economy in the Middle East and one of the fastest-growing economies. The investment environment here is promising, and the Saudi market is still abundant with great growth opportunities." PepsiCo chose Riyadh's King Abdullah Financial District for its new regional headquarters, marking it as the first multinational to establish a regional office there.
PepsiCo is exploring new regional markets and expanding its local product portfolio to cater to diverse consumer segments. The company began operations in Saudi Arabia over 30 years ago, partnering with local investors like Bogshan Group and AlGosaibi Co.
Al-Sheikh expressed cautious optimism about the future, citing that Vision 2030 and the Saudi economy's growth offer opportunities for market expansion. According to Argaam, the National Industrial Development Center announced in January 2024 PepsiCo's $60 million industrial potato production project, aiming to enhance investments and integrate the agricultural and industrial sectors.
Source: Argaam