Building regional supply chain resilience in unpredictable times
By Konstantin Kolesnik, Tetra Pak Arabia Area’s Managing Director
The global supply chain challenge
Global supply chain disruptions have cost the world economy trillions of dollars, revealing the fragility of interconnected networks. From the COVID-19 pandemic to the Red Sea crisis, impacting 30% of global container traffic, disruptions have exposed systemic weaknesses and accelerated the need for more resilient supply chains.
In 2024, 43.6% of organisations experienced disruptions from third-party failures, with weather, natural disasters, and cyber-attacks as the main causes. Data from the World Economic Forum highlights that the Gulf Cooperation Council (GCC) countries face significant food security challenges despite ranking among the world’s most food-secure nations. With 85% of food imports across the region and 80% in Saudi Arabia specifically, these nations remain vulnerable to global supply chain disruptions. The message is clear: traditional supply chain models are insufficient. The future lies in regional hubs, strategic partnerships, and advanced technology.
The regional manufacturing hub advantage
Global companies are responding by establishing manufacturing hubs in strategic locations, with the GCC emerging as a key gateway between the Middle East and Asia. Saudi Arabia, for example, has invested in advanced infrastructure to become a major player in the global supply chain.
The Kingdom’s competitive advantage is evident through initiatives such as the National Industrial Development and Logistics Program, which allocated USD 133.3 billion to enhance airports, railways, and ports. These investments are starting to pay off, particularly in the F&B sector, projected to grow from USD 24.29 billion in 2025 to USD 28.76 billion by 2030.
A great example is Tetra Pak Arabia Area, the world-leading food processing and packaging solutions company with a regional presence in Saudi Arabia. Its Jeddah factory is a cornerstone of the Kingdom’s food packaging industry, having manufactured over 165 billion packages since 1998, and exporting 40% of these volumes to eleven Middle Eastern countries. This export capacity reinforces Saudi Arabia’s position as a packaging and manufacturing hub while supporting food security across the broader region.
Local manufacturing at the Tetra Pak Jeddah factory shortens production lead times and enhances supply chain resilience, which is crucial amid regional logistical disruptions. It also supports food security by ensuring a stable supply for domestic producers, with over 80% of local businesses relying on Tetra Pak’s packaging solutions to accelerate their go-to-market with the latest food products.
“Regional manufacturing hubs offer more than cost optimisation; they allow companies to serve multiple markets and build local partnerships,” says Konstantin Kolesnik, Tetra Pak Arabia Area’s Managing Director. “This approach has proven invaluable during global and regional disruptions, maintaining consistent supply of food products despite international challenges.”
During the Red Sea Crisis, major ports in the region, including King Abdulla Port, experienced disruptions that saw volumes decrease by 82.7% in 2024. Tetra Pak Arabia Area’s Jeddah factory provided critical supply chain independence to the food and beverage industry during the crisis. The facility produces billions of food packaging products annually, enabling Saudi and regionally based customers to continue receiving food packaging material without depending on international shipping routes that were affected. This local production capability ensures that customers are not dependent on global supply chains that may face disruptions.
Government-led resilience initiatives
Saudi Arabia’s national strategies have been instrumental in this transformationfrom the Global Supply Chain Resilience Initiative launched in 2022, to the “Made in Saudi” program launched in 2021. Tetra Pak Arabia aligns closely with the latter, earning the right to label its food packaging portfolio with the official Saudi Made logo, signifying quality and national resilience.
Technology integration
Technology is playing an increasing role in resilient supply chains. Tetra Pak Arabia Area contributes through smart packaging, digital manufacturing, and real-time factory monitoring systems. The company’s recent collaboration with Al Rabie to develop a “Next Generation Factory” demonstrate show strategic partnerships can modernise production facilities and accelerate industrial innovation in the Kingdom through leveraging artificial intelligence and automation in the production of food and beverage items.
The path forward
Companies investing in regional manufacturing today will be best positioned to navigate future disruptions. As Saudi Arabia advances its Vision 2030 transformation, companies like Tetra Pak show what’s possible when global innovation meets local commitment while leading to a safer food supply and a more sustainable, self-reliant region ready for future uncertainties.
