Saudis to get more leadership roles as PepsiCo expands, says regional CEO
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.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
9 hours ago
- Arab News
Wesal program looks to empower expats with work-based Arabic-language skills
RIYADH: The King Salman Global Academy for Arabic Language launched its Wesal program on Thursday. Wesal is an educational initiative intended to help non-native speakers working in Saudi Arabia's public and private sectors. The program aims to provide linguistic training opportunities within institutional training plans, as part of the academy's initiatives to 'empower the Arabic language in professional and organizational contexts,' according to a statement. The three-month program will be held at the academy's headquarters in Riyadh, with a flexible schedule tailored to accommodate participants' work hours and commitments. Abdullah Al-Washmi, secretary-general of the KSGAAL, told Arab News: 'The Wesal program represents a qualitative step in activating the Arabic language and strengthening its presence in professional and practical fields across the public and private sectors, reflecting the academy's role in developing multilingual work environments within the Kingdom. 'Through Wesal we seek to equip a wide segment of non-Arabic-speaking professionals with functional language communication tools, enhancing their performance and deepening their connection to the national culture and identity. This program underscores the academy's commitment to its educational and developmental responsibilities, as well as its role in supporting the objectives of Saudi Vision 2030 and the Human Capability Development Program,' he continued. The program covers aspects of the Arabic language focusing on key skills that support the functional use of Arabic in professional settings. It also includes content intended to enhance trainees' ability to perform their tasks efficiently within the context of Saudi culture, Al-Washmi explained. The new program is part of the academy's mission to consolidate the Arabic language and enhance its use across all fields of knowledge and communication, he added. Saad Al-Qahtani, head of the Educational Programs Sector at KSGAAL, told Arab News that the Wesal program offers communicative and functional content relevant to the real world of the workplace. It focuses on teaching Arabic in realistic administrative and professional contexts, away from traditional curricula of a general or academic nature, he said, and is based on a curriculum developed by the Common European Framework of Reference for Languages, but adapts activities and vocabulary to serve functional communication skills, such as writing official mail, handling administrative forms and participating in and managing meetings, while incorporating local administrative and cultural terminology. According to Al-Qahtani, the program adopts an initial language diagnostic mechanism to determine trainees' levels, in addition to gradually adapting the content to suit different levels. The design of language activities also takes into account the use of visual and contextual methods, employing intermediate language when necessary, and providing examples from diverse work environments to ensure greater inclusiveness and flexibility. Although the program has not yet received official accreditation from the relevant authorities in the Kingdom, its reliance on the CEFR framework aligns it with international best practices and paves the way for its future adoption as a recognized professional standard in the Saudi labor market, Al-Qahtani said. Bandar Al-Jasir, executive partner at public relations firm Syaq, told Arab News that he expects Arabic proficiency to become a seriously considered element in professional assessment, especially for positions that require deeper engagement with the local audience. Al-Jasir said that Saudi Arabia is leading efforts to build 'culturally aware artificial intelligence tools' and that the 'next challenge' is to ensure that these tools enhance the richness of the Arabic language, with human verification remaining a key element. The priority for business solutions, he believes, should be the Arabization of operating systems and user interfaces, the provision of effective language training programs, and the development of smart tools that handle Arabic with contextual awareness. Using Arabic internally naturally enhances corporate identity, according to Al-Jasir, who added that the 'real challenge' facing the Arabic language today is to preserve it in everyday conversation, particularly since English is becoming ever more widely used in 'informal business communication.'
Leaders
9 hours ago
- Leaders
Industry Minister Inaugurates Expanded PepsiCo Plant in Dammam
Minister of Industry and Mineral Resources Bandar Alkhorayef officially inaugurated the expanded PepsiCo manufacturing facility in Dammam's Second Industrial City on Thursday. The ceremony was attended by Ahmed El Sheikh, President and General Manager for Middle East, North Africa, and Pakistan Foods at PepsiCo. Food Manufacturing Sector During the inauguration, Minister Alkhorayef emphasized the significance of PepsiCo's growth within Saudi Arabia's food manufacturing sector—a key focus area under the National Industrial Strategy. He reaffirmed the ministry's dedication to supporting the company's expansion by offering essential enablers for innovation, product development, and operational growth. These efforts aim to position Saudi Arabia as a regional leader in food production and exports. PepsiCo's Commitment to Kingdom Ahmed El Sheikh underscored Saudi Arabia's role as a vital growth hub for PepsiCo's regional and global operations. He also pointed to the Dammam facility expansion and the company's new regional headquarters as examples of PepsiCo's long-term investment in the Kingdom. Both initiatives reflect the company's alignment with national and regional economic priorities. Future Investment, Local Empowerment El Sheikh also shared PepsiCo's plans to further enhance its presence in Saudi Arabia. These include exploring new investment opportunities, supporting local agriculture, creating jobs, strengthening supply chains, and expanding exports. Currently, PepsiCo operates in 86 locations across the country and employs around 9,000 people. Moreover, at the Dammam facility, 84% of the workforce are Saudi nationals, and women make up approximately 22% of the total staff. Over the past eight years, PepsiCo has invested more than SAR 9 billion in the Kingdom. In 2023 alone, the company allocated SAR 300 million for the expansion and modernization of its Dammam plant, signaling its continued commitment to growth and innovation in Saudi Arabia. Related Topics : Saudi Arabia, Denmark Explore Investment Opportunities in Industry, Mining Kurt Westergaard, the Prophet Muhammad cartoonist from Denmark dies at 86. Saudi Foreign Minister: Two-State Solution is Basis for Peace, Security WHO Honors Saudi Arabia for Trans Fat-Free Food Products Short link : Post Views: 60
Al Arabiya
10 hours ago
- Al Arabiya
‘It won't stop our efforts': Palestinian official on US sanctions, Witkoff's Gaza visit
On tonight's W News with Leigh-Ann Gerrans, the Palestinian Minister of Foreign Affairs reacts to new sanctions imposed by the US on Palestinian Authority officials, and she shares her thoughts on US Envoy Steve Witkoff's visit to Gaza. Plus, as US President Donald Trump's fresh tariffs kick in, we ask an economist how it will affect consumers and global relationships.
