Vice Minister Inaugurates PepsiCo’s SAR 37.5m Regional R&D Hub in Riyadh
New Regional R&D Hub brings every stage of the innovation journey under one roof
His Excellency Eng. Khalil bin Ibrahim bin Salameh, Vice Minister of Industry and Mineral Resources for Industrial Affairs, today inaugurated PepsiCo’s new SAR 37.5 million ($10 million) Regional Research & Development (R&D) Hub in Riyadh. Designed to bring multiple stages of the innovation journey together in one location, the hub will support the development of Saudi talent, the growth of the Kingdom’s R&D sector and knowledge-based economy, and the continued localization of PepsiCo’s value chains, in line with Saudi Vision 2030 priorities.
The hub will focus on developing new flavors, concepts, and packaging in close collaboration with Saudi scientists and engineers who will work alongside teams from PepsiCo’s regional and global R&D network, which spans innovation centers in Brazil, China, Germany, Mexico and the United States. The knowledge generated in Riyadh will also be shared across PepsiCo’s teams in the wider region.
Ahmed Elsheikh, CEO of Middle East, North Africa, and Pakistan Foods at PepsiCo, said: “PepsiCo has been a partner in the Kingdom for over seven decades and our commitment to Vision 2030 keeps growing. We want to be at the center of this country’s transforming economy and its people’s changing tastes. With this latest investment, we are focused on creating the foods that people want, including better-for-you choices and flavors that feel local. Beyond that, we want to continue creating jobs and supporting the next generation of Saudi scientists.”
Majed Oushi, R&D Head – Middle East at PepsiCo, said: “Understanding people, the flavors that remind them of home, and the snacks they reach for at a family gathering or a social occasion has always been at the heart of our R&D. This hub gives us the tools to act on that understanding faster than ever before, and to expand our portfolio in line with how these preferences are changing.”
The hub will streamline the R&D cycle, connecting different parts of the innovation journey under one roof, allowing teams to develop, test and refine new ideas more quickly. This includes a Consumer Immersion Space featuring 360° screens and climate controls that can simulate a beach, stadium, movie theatre, or any other setting; a Culinary Kitchen and Ideation Area for on-the-spot recipe refinement; a Focus Group Room for live feedback; a 12-seat Sensory Panel that translates people’s experiences into quantitative measures; and a set of labs for quality testing, packaging development and seasoning.
The Hub adds to PepsiCo’s growing footprint in the Kingdom, which also includes an expanded Dammam plant, completed in 2025. Along with its partners, the company today operates 86 sites in Saudi Arabia, supports more than 9,000 direct and indirect jobs, and sources 100% of its potatoes locally. The new R&D center represents the next phase of that commitment, which includes building for long-term capability rather than scale alone.
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