PepsiCo is heading to Iraq to expand its production in the Middle East.
PepsiCo is heading to Iraq to expand its production in the Middle East.
2026-08-24
Shafaq News – Special Translation
The British website “Food Navigator” stated that Iraq’s role as a regional manufacturing hub for “PepsiCo” is increasing, as despite the ongoing turmoil in the Middle East, the company is doubling down on expanding its regional production.
The British website specializing in food affairs explained in a report translated by Shafaq News Agency that despite the dominance of war news in Iran throughout 2026, with no end to the conflict in sight, life and business continue as normal in other parts of the region.
The website cited Iraq as an example in its report, describing it as a long-standing center of conflict-related news throughout the first decade of the 21st century, and that despite its proximity to the center of the war in Iran, the country is emerging as a potential new manufacturing hub, attracting attention even from major brands like PepsiCo.
The report highlighted Iraq’s clear advantages, such as its geography, large youth population, and high access to locally produced food components, according to the FAO, including many staple crops, as well as dates, fruits, tomatoes, potatoes, and animal protein.
The report quoted the company’s CEO for the Middle East, North Africa and Pakistan, Ahmed Al-Sheikh, as saying during the recent US-Iraq Business Summit, “As one of the historical agricultural centers in the region, we want to support Iraq’s agricultural and industrial capabilities to become a center for food exports.”
The sheikh continued, according to the report, that there is an opportunity “to explore the possibility of developing the food manufacturing sector in Iraq and strengthening the agricultural sector in the country, with the start of strong food manufacturing,” adding, “We hope to create opportunities that benefit farmers and local industry while supporting products proudly made in Iraq.”
According to the British report, this is not the company’s only project in Iraq this year, as the company also signed a memorandum of understanding with Baghdad Soft Drinks Company (BSDC) with the aim of boosting local production capacity to exceed 250 million products annually.
The report noted that PepsiCo relies on a partnership that has existed since 1984. The report quoted a company statement saying that “this memorandum of understanding reflects PepsiCo’s confidence in Iraq’s industrial future and supports local employment and manufacturing.”
The report quoted Mohammed Shalabiya, CEO of Middle East and Africa Beverages, as saying that the company considers Iraq a key player in beverage manufacturing in the region, explaining that the shared ambition includes exploring potential opportunities related to expanding manufacturing capacity and enhancing Iraq’s role as a leading beverage production hub in the Middle East.
However, the report highlighted several challenges facing Iraq with regard to manufacturing, including cold storage facilities, stable electricity supplies, as well as transportation logistics and timing.
shafaq.com
