Across the region, the conversation around food is changing. Supply chains are now at the centre of government and business priorities, and farmers, manufacturers, and policymakers are sitting at the same table more often. These are healthy developments because food security and the economic activity around it all start in the same place. The field.
In 2026, PepsiCo will stay focused on that starting point. Our priorities are doubling down on stronger local agriculture, local manufacturing, capabilities, and partnerships that help the region’s food ecosystem progress. These are the fundamentals that guide us every day.
Our foods business begins in the soil. We work with local producers to source 100 per cent of the potatoes that go into our snacks. In places like Ha’il and Wadi Dawasir in Saudi Arabia, the fields speak to how far local agriculture has come, thanks to farmers who have grown with us season after season.
These partnerships are long-term relationships. We work together through the decisions that influence each harvest, like which seed varieties perform best, how to rotate crops in a way that keeps the soil productive, and how to use water more intelligently. With the Saudi Irrigation Organization, for example, we’ve helped farmers adopt precision irrigation technology. The result? Less water wasted, more stable yields, sharpened skills, and farms that are better prepared.
This resilience in the field benefits the whole chain. Farmers gain more predictability, our plants gain a more consistent supply, and consumers gain a product that tells a story of local land and local expertise. We’ve also been investing in manufacturing to support that growth. Our regional snacks plant in Dammam, for instance, acts as an export hub and creates jobs across processing, packaging, logistics, quality, and engineering. More than 80 per cent of the workforce are nationals, with women taking on more technical and leadership roles. For me, this is one of the most encouraging trends.
A major milestone next year will be the launch of our regional R&D hub. It will be the largest centre of its kind for PepsiCo in the Gulf. Inside, there will be a culinary lab to test and refine recipes and a full sensory studio where we can invite consumers to try new products and give instant feedback. That proximity is important, especially in a region that is young and evolving. Tastes change quickly, and new trends emerge virtually overnight. Localising our R&D shortens the distance between what people are talking about and what they eventually find on the shelf.
The effects of our local R&D efforts are already evident in some of our flavours and experiences. From labneh and mint or yoghurt and herb chips inspired by regional kitchens, to special editions that tap into pop culture moments, the goal is always to make snacks that feel familiar and local, even as they live under global brands.
Next year, our focus is to stay connected with our growers, continue developing the capabilities of our plants and our people, use innovation to serve regional needs, and treat every partnership, whether in the field, the factory, the community, or across the public and private sectors, as a long-term commitment. Progress in this sector grows crop by crop, and we intend to remain a reliable partner for the years still ahead of us.
