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PepsiCo eyes local production boost in Abu Dhabi
Kelsey Warne · 2026-05-11 · via Semafor

PepsiCo franchisee Abu Dhabi Refreshment Company is spending $82 million on a new production facility in the UAE capital, as supply chain issues stemming from the Iran war accelerate efforts to produce more locally. The US food and beverage giant — maker of Aquafina, Gatorade, Lay’s, and Quaker Oats — has been working with the UAE government to keep grocery shelves stocked without interruption or price increases, Wael Ismail, PepsiCo’s VP of corporate affairs, told Semafor.

So far, the company has managed it, including through middle-of-the-night calls to officials to release shipments stuck at ports outside its usual routes. “There are things we will still continue to count on to be imported to the region,” Ismail said, but PepsiCo aims to localize “whatever we can.” Still, industry experts have warned that consumers in the region are eventually going to start feeling the pinch even as authorities crack down on price hikes on essential goods.

Kelsey Warner