PepsiCo Opens SAR 37.5 Million R&D Hub in Riyadh
PepsiCo has inaugurated a new SAR 37.5 million ($10 million) Regional Research and Development (R&D) Hub in Riyadh, strengthening its investment in Saudi Arabia’s innovation capabilities, local talent and food manufacturing value chains. The facility is designed to bring multiple stages of product development together under one roof, supporting the creation of new flavours, product concepts and packaging tailored to changing consumer preferences.
His Excellency Eng. Khalil bin Ibrahim bin Salameh, Vice Minister of Industry and Mineral Resources for Industrial Affairs, inaugurated the facility. The investment aligns with Saudi Vision 2030 priorities, including the development of local capabilities, expansion of research and development activities, and growth of the Kingdom’s knowledge-based economy.
The new hub will bring Saudi scientists and engineers together with PepsiCo’s regional and global R&D teams, creating opportunities to develop locally relevant products while sharing knowledge across the company’s wider regional network.
PepsiCo R&D Hub Supports Saudi Vision 2030
The Riyadh facility represents another step in PepsiCo’s long-term presence in Saudi Arabia, where the company has operated for more than seven decades. Its latest investment focuses on strengthening research and innovation capabilities, alongside its existing manufacturing and supply-chain activities.
Ahmed Elsheikh, CEO of Middle East, North Africa and Pakistan Foods at PepsiCo, said the company’s commitment to Saudi Arabia continues to grow alongside the Kingdom’s economic transformation and evolving consumer preferences.
He highlighted the company’s focus on developing products that respond to local tastes, including better-for-you choices and flavours that reflect regional preferences. The investment is also intended to create employment opportunities and support the development of the next generation of Saudi scientists.
By expanding its R&D capabilities in Riyadh, PepsiCo aims to connect local consumer insights with product development expertise. This approach can help its teams evaluate new ideas and refine concepts with greater alignment to the preferences of consumers in Saudi Arabia and the wider region.
Developing New Flavours and Packaging in Riyadh
The PepsiCo R&D Hub will focus on developing new flavours, product concepts and packaging through collaboration between Saudi-based specialists and the company’s wider innovation network.
PepsiCo’s global R&D network includes innovation centres in Brazil, China, Germany, Mexico and the United States. Knowledge generated at the Riyadh facility will also be shared with teams across the wider region, supporting collaboration and the exchange of product development expertise.
Majed Oushi, R&D Head for the Middle East at PepsiCo, said understanding consumers’ preferences, familiar flavours and food choices at family gatherings and social occasions has long been central to the company’s research and development work.
According to Oushi, the new facility will give teams the tools to act on these insights more quickly and expand the company’s product portfolio as consumer preferences change.
The emphasis on local flavour development is particularly relevant to food companies seeking to balance regional preferences with broader product innovation. By bringing research, culinary development and consumer testing together, PepsiCo intends to make the process of moving from an initial concept to a refined product more efficient.
Inside PepsiCo’s New Riyadh Innovation Facility
The hub has been designed to connect different stages of the R&D process, from early-stage ideation to consumer feedback, sensory evaluation and technical testing. Its specialised spaces will allow teams to develop, assess and refine product concepts in a coordinated environment.
Key facilities include:
Consumer Immersion Space
The Consumer Immersion Space features 360-degree screens and climate controls that can simulate environments such as a beach, stadium or cinema. These settings are designed to help teams explore how different environments and occasions may influence consumer experiences and preferences.
Culinary Kitchen and Ideation Area
The culinary kitchen and ideation area will support recipe development and on-the-spot refinement. Teams can use the space to experiment with flavour combinations and make adjustments as product concepts evolve.
Focus Group Room
The focus group room will enable researchers to collect direct feedback from consumers. This feedback can help teams understand how people respond to proposed products and identify areas for improvement before further development.
Sensory Evaluation Panel
A dedicated 12-seat sensory panel will translate participants’ product experiences into quantitative measures. This process supports a more structured assessment of sensory characteristics and consumer responses.
Testing and Development Laboratories
The facility also includes laboratories for quality testing, packaging development and seasoning. These capabilities bring technical evaluation closer to the product development process, allowing teams to examine different aspects of a concept within the same facility.
Together, these spaces are intended to reduce the distance between idea generation, testing and refinement. The integrated setup will allow PepsiCo’s teams to work across disciplines and evaluate new concepts through multiple stages of development.
Strengthening PepsiCo’s Local Operations
The Riyadh R&D Hub adds to PepsiCo’s existing operational footprint in Saudi Arabia. The company’s investments include an expanded plant in Dammam, completed in 2025, alongside its broader manufacturing and supply-chain activities.
According to the company, PepsiCo and its partners operate 86 sites across the Kingdom and support more than 9,000 direct and indirect jobs. The company also reports that 100% of its potatoes are sourced locally.
Local sourcing is an important part of this operational model, connecting agricultural supply chains with food production. The new R&D facility adds another dimension by building research and product development capabilities within Saudi Arabia.
The investment also reflects a focus on developing long-term expertise rather than expanding operational scale alone. By supporting local scientists and engineers and connecting them with international R&D teams, PepsiCo aims to strengthen the capabilities available within its Saudi operations.
What the R&D Hub Means for Saudi Arabia’s Food Sector
The opening of the Riyadh hub highlights the role of research and development in the evolution of Saudi Arabia’s food sector. As companies respond to changing consumer expectations, investment in product development, testing and packaging can support the creation of products that are more closely aligned with local markets.
For Saudi Arabia, the facility brings together several areas of potential economic value: specialist employment, knowledge exchange, technical capability development and closer links between local consumer insights and product innovation.
The collaboration between Saudi talent and PepsiCo’s international R&D network may also create opportunities for knowledge sharing beyond the Kingdom. Insights developed in Riyadh can be shared with teams across the region, while global expertise can inform the development of products for local consumers.
The facility’s integrated design is central to this approach. Rather than separating ideation, consumer testing and technical evaluation across different locations, the hub brings these activities together to support a more connected development process.
PepsiCo’s SAR 37.5 million investment therefore extends beyond the establishment of a new facility. It adds to the company’s manufacturing and sourcing presence in Saudi Arabia while expanding its capacity to develop products locally.
As the Kingdom continues to pursue its Vision 2030 objectives, the Riyadh R&D Hub positions PepsiCo to strengthen its innovation activities, develop Saudi talent and respond to evolving food preferences across the market. Its longer-term contribution will depend on how effectively the company translates these capabilities into new products, local expertise and continued collaboration across its regional and global operations.
Ahmed Abdul Wasey
Managing Editor, Eat ‘N Stays
Ahmed Abdul Wasey is the Managing Editor in Eat ‘N Stays, overseeing all editorial coverage of travel, hospitality, and food across Saudi Arabia and the wider Gulf region. He sets the publication’s editorial direction and reviews coverage across hotels, restaurants, tourism, cruise, and industry news before it publishes.
Have a story tip, correction, or question about our coverage? Reach Ahmed directly at pr@eatnstays.com.
