Oxagon, the reimagined industrial city of NEOM, has announced the signing of a land lease agreement between NEOM and Abdullah Hashim Industrial Gases & Equipment.
As part of a planned SAR 600 million investment, AHG will develop in multiple phases a state-of-the-art industrial gases production and distribution facility in Oxagon’s Industrial Quarter, the city’s dedicated industrial district.
With groundbreaking scheduled for February 2026, the first phase will include essential industrial gases infrastructure, offices, warehousing, and distribution capabilities.
Operations are due to commence in late 2026 with subsequent phases expected to start in 2028.
This strategic partnership signals Oxagon’s readiness as an industrial city, with industrial gases production and distribution paving the way for tenants to accelerate development and begin production from 2026 onwards.
Vishal Wanchoo, CEO of Oxagon, stated that leveraging AHG’s industrial gases expertise supports the transition to sustainable energy solutions, enabling cleaner manufacturing practices.
Khalid Abdullah Hashim, CEO of the AHG Group Companies, stated that the land lease agreement, followed by an investment plan in low-carbon industrial gases production facilities, demonstrates a commitment to supporting the clean industrial transformation taking place in Oxagon.
The demand for industrial gases in Oxagon is anticipated to grow as the region continues attracting industries across manufacturing, transportation, and beyond.
AHG’s new facility will play a vital role in localized production and distribution, reducing reliance on long-distance imports, minimizing supply chain disruptions, and reducing carbon dioxide emissions from transport.
Additionally, it will enhance cost competitiveness for tenants by providing more affordable and reliable access to essential industrial gases. This represents progress in addressing broader environmental impacts of manufacturing, including value chain emissions.
As part of its phased development plan, AHG intends to produce green oxygen, nitrogen, argon, and hydrogen, further supporting Saudi Arabia’s broader renewable energy transition goals.
This plan will offer a strategic advantage for global manufacturers seeking to lower operating costs while meeting environmental targets.
