NEOM's OXAGON has announced a significant land lease agreement with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG). This collaboration involves a SAR600 million investment to establish an advanced industrial gases production and distribution facility in OXAGON’s Industrial Quarter. The project will unfold in phases, with the first phase set to begin construction in February 2026 and operations expected by late 2026.
The strategic partnership between NEOM and AHG marks OXAGON's readiness as an industrial hub. It aims to facilitate the production and distribution of industrial gases, enabling tenants to commence development and production from 2026. This initiative aligns with Saudi Arabia's vision for a diversified economy.
"Our partnership with AHG exemplifies OXAGON’s readiness to welcome world-class tenants and accelerate the Kingdom’s transition to a diversified, future-ready economy. Leveraging AHG’s industrial gases expertise, we are developing a streamlined local supply chain that meets the demands of modern industry and supports the transition to sustainable energy solutions, enabling cleaner manufacturing practices." - CEO of OXAGON Vishal Wanchoo
This development aligns with Saudi Vision 2030 by stimulating GDP growth through specialized roles in the industrial gases sector. It also aims to equip local talent with advanced skills. The new facility will bolster ongoing construction efforts in northwest Saudi Arabia by supplying essential gases and equipment.
Overview:
- SAR 600M investment: Agreement represents phased investment of SAR 600 million to establish a localized industrial gases production supply chain in OXAGON and across NEOM
- Strategic infrastructure readiness: Production and distribution facility will enable tenants to commence seamless production, signaling a move into the activation phase of OXAGON’s industrial development
Read the full story at OneArabia