Transform Packaging a strategic move set to reshape the packaging industry in the Middle East, Saudi Arabia has signed a Memorandum of Understanding (MoU) with global packaging leader Sidel. The agreement, finalized in Paris, is designed to explore the development of local packaging operations with a strong focus on the Kingdom’s growing food and beverage (F&B) sector.
The MoU was signed by Eng. Saleh AlSolami, CEO of the Saudi National Industrial Development Center (NIDC), and Clive Smith, Executive Vice President of Customer Management for Asia, Oceania, and Africa at Sidel. The signing was witnessed by His Excellency Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, along with Pietro Cassani, Chief Executive Officer of Sidel.
This partnership is a direct extension of Saudi Arabia’s Vision 2030—an ambitious framework to diversify the Kingdom’s economy, encourage local manufacturing, and create jobs through international collaboration and industrial innovation.
A Strategic Step Toward Economic Diversification
Vision 2030 aims to reduce Saudi Arabia’s dependence on oil by building a robust industrial sector that includes technology, renewable energy, logistics, and advanced manufacturing. This new agreement with Sidel represents a major step toward those goals. By localizing packaging operations, Saudi Arabia not only strengthens its food and beverage supply chain but also enhances sustainability, innovation, and workforce development in the sector.
According to Eng. Saleh AlSolami, the collaboration is part of a broader strategy to build a globally competitive industrial base within Saudi Arabia. “Sidel is a global leader in packaging solutions and brings decades of valuable industry experience. This partnership supports our goal to establish world-class industrial capabilities in key sectors like food and beverage. We are committed to working with long-term partners who are ready to invest in the Kingdom’s people and infrastructure.”
Focus on Food and Beverage Packaging
The MoU outlines a roadmap to jointly assess the possibility of setting up local service and training facilities tailored to the F&B packaging industry. This is seen as a vital move to meet rising domestic demand and increase technical skills among Saudi workers. The collaboration will also include technology transfer and knowledge sharing between Sidel and local entities.
Food and beverage manufacturing is one of the fastest-growing sectors in Saudi Arabia, driven by a young population, rapid urbanization, and changing consumer habits. The demand for high-quality, efficient, and sustainable packaging is on the rise, creating opportunities for both local producers and international technology providers like Sidel.
Eng. Yousef Dhahi, Vice President for Industrial Services at the National Industrial Development Program, emphasized that the deal was the result of careful analysis. “Our partnership with Sidel is based on detailed research into the needs of our manufacturing sector. Many local companies in the food and beverage space have expressed a clear demand for Sidel’s expertise and equipment. This initiative is a response to those needs and is designed to deliver long-term value to Saudi industry.”
A Broader Industrial Engagement with France
The signing of this MoU was part of a larger series of strategic engagements between Saudi Arabia and France. During his visit to Paris, Minister Alkhorayef met with executives from several major French industrial firms including Airbus, Safran, and Lesaffre. These high-level discussions focused on strengthening cooperation in advanced manufacturing, aerospace, and industrial technology.
The Kingdom is actively encouraging global investors to participate in its industrial transformation by offering attractive incentives, access to a growing consumer market, and streamlined regulatory processes. By positioning itself as a key industrial hub in the Middle East, Saudi Arabia is aiming to attract companies that bring in technology, capital, and expertise.
This includes support for the localization of production facilities, workforce training, and the integration of sustainable practices—factors that are increasingly important to international partners seeking to expand in the region.
About Sidel
Sidel is a world-renowned provider of packaging solutions, primarily serving the beverage, food, home, and personal care industries. With operations in more than 190 countries, the company delivers complete packaging lines and equipment including blowers, fillers, labelers, and end-of-line systems. Sidel also offers digital and automation services aimed at increasing production efficiency, sustainability, and flexibility.
The company’s decades of innovation have made it a trusted name for global brands seeking safe, sustainable, and cost-effective packaging technologies. Its work with PET, glass, and can packaging solutions has set industry benchmarks for quality and performance.
Pietro Cassani, CEO of Sidel, expressed optimism about the partnership with Saudi Arabia. He noted that the Kingdom is a strategic location for future growth in the Middle East and that this collaboration would allow Sidel to better serve customers in the region. “We are proud to support Saudi Arabia’s industrial goals and excited about the opportunities this partnership will bring to both sides. Together, we can build a more localized, agile, and sustainable packaging ecosystem.”
Looking Ahead
This MoU signals more than just a business deal—it marks a commitment to long-term industrial cooperation, economic diversification, and workforce development. As Saudi Arabia continues to roll out its Vision 2030 initiatives, partnerships with leading global companies like Sidel will be critical in shaping the Kingdom’s industrial future.
Through this agreement, both parties aim to create a localized packaging supply chain that is more efficient, technologically advanced, and responsive to regional market demands. It also reinforces Saudi Arabia’s position as a key destination for global industrial investment and collaboration.
With further discussions and assessments already underway, the next steps are expected to include feasibility studies, training program development, and plans for technology transfer. If successful, the Sidel partnership could serve as a model for future industrial collaborations between Saudi Arabia and other global players.
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