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DHAHRAN: Food manufacturer PepsiCo will offer more leadership roles to Saudis, its regional CEO pledged at the inauguration of the SR300 million ($79.97 million) expansion of its Dammam facility.

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 ������Ƶ.

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.

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 ������Ƶ’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.

RIYADH: Oman’s free zones are set to attract greater foreign investment after signing up to a global network designed to boost the economic areas.

The Public Authority for Special Economic Zones and Free Zones said its membership in the World Free Zones Organization will help improve the competitiveness of the territories it oversees, including industrial cities and free zones, while opening new channels to promote them as flexible and investor-ready destinations with advanced infrastructure.

Free zones are designated areas that offer businesses incentives such as tax exemptions, full foreign ownership, and simplified customs procedures. These districts are designed to attract investment, boost exports, and support economic diversification by providing a competitive and flexible environment for companies to operate.

They are increasingly central to economies in the Middle East, with hubs like Dubai’s Jebel Ali, Riyadh’s Special Integrated Logistics Zone, and Egypt’s Suez Canal Economic Zone driving trade and investment.

“Through this international partnership, the authority seeks to expand its network of economic relations and benefit from the latest global trends in the management and development of special economic zones, free zones, and industrial cities,” Oman News Agency reported.

This comes as Oman’s special economic zones attracted $43.16 billion in investments during the first half of 2023, driven by major projects in Sohar, Salalah, and Duqm, supported by a favorable investment climate fostered by OPAZ and the government’s diversification strategy.

By joining the organization, which brings together more than 1,600 zones and economic institutions from over 140 countries, the authority will be able to exchange expertise and strengthen its operational capabilities to keep Oman’s zones competitive globally.

The membership will also support efforts to improve operational efficiency and develop more targeted promotion and marketing strategies to attract high-value projects, ONA said.

The body currently oversees 23 operating special economic zones, free zones, and industrial cities across Oman. These districts attracted cumulative investments totaling approximately 21 billion Omani rials ($54.5 billion) by the end of 2024, reflecting their growing appeal to investors.

The World Free Zones Organization is a network that includes free zones, multinational corporations, and industry stakeholders committed to fostering global trade and investment.

Across the wider Middle East and North Africa region, free zones have become critical enablers of economic diversification and foreign direct investment.

The UAE is home to some of the most prominent examples, including Jebel Ali Free Zone, which hosts more than 9,000 companies, and Abu Dhabi’s Khalifa Industrial Zone, which supports large-scale manufacturing and logistics operations.

In ������Ƶ, the King Abdullah Economic City and the Special Integrated Logistics Zone in Riyadh have emerged as strategic hubs supporting Vision 2030 objectives, while Egypt’s Suez Canal Economic Zone has attracted global interest as a key gateway for trade and industry.