SAR 600 Million Investment To Build A Phased Industrial Gases Hub Powering Oxagon’s Next Growth Stage.
Oxagon, the reimagined industrial city of NEOM, has announced a land lease agreement between NEOM and Abdullah Hashim Industrial Gases & Equipment Co. Ltd. (AHG), a leading industrial gases provider serving sectors across Saudi Arabia.
Under a planned SAR 600 million, multi-phase investment, AHG will develop a state-of-the-art industrial gases production and distribution facility in Oxagon’s Industrial Quarter, the city’s dedicated manufacturing district. Groundbreaking is scheduled for February 2026. The first phase will include core industrial gases infrastructure, offices, warehousing, and distribution capabilities. Operations are slated to begin in late 2026, with additional phases expected to launch in 2028.
Accelerate construction and begin manufacturing from 2026 onward
This partnership marks a significant step in Oxagon’s transition into the activation phase of its industrial development. Establishing local production and distribution of industrial gases will allow tenants to accelerate construction and begin manufacturing from 2026 onward.
“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,” said Vishal Wanchoo, CEO of Oxagon. “Leveraging AHG’s industrial gases expertise, we are developing a streamlined local supply chain that meets the demands of modern industry and supports the shift to sustainable energy solutions, enabling cleaner manufacturing practices.”
“We are excited to be part of Oxagon’s development plan and are keen to play our role in supporting the industrial gases requirements of international and local investors with cost-competitive, high-reliability products and services,” said Khalid Abdullah Hashim, CEO of AHG Group Companies. “The land lease agreement, followed by our investment plan in low-carbon industrial gases production facilities, demonstrates our commitment to supporting the clean industrial transformation taking place in Oxagon.”
Attract manufacturers across multiple sectors
Demand for industrial gases in Oxagon is expected to grow as the region continues to attract manufacturers across multiple sectors, including transportation and advanced industries. AHG’s new facility will support localized production and distribution, reducing dependence on long-distance imports, minimizing supply chain disruptions, and lowering carbon dioxide (CO₂) emissions associated with transport. This will also enhance cost competitiveness by giving tenants more reliable and affordable access to essential gases, helping reduce broader environmental impacts, including value chain (scope 3) emissions.
Reduce operating costs while meeting sustainability targets.
As part of its phased development, AHG intends to produce green oxygen, nitrogen, argon, and hydrogen, aligning with Saudi Arabia’s wider renewable energy transition goals. This capability will provide a strategic advantage for global manufacturers seeking to reduce operating costs while meeting sustainability targets.
A long-standing partner in NEOM’s development, AHG currently supports major construction activity underway in northwest Saudi Arabia by supplying industrial gases and equipment to contractors. The new facility will reinforce these efforts and enable Oxagon tenants to advance infrastructure projects more efficiently. In line with Saudi Vision 2030, the development will also stimulate GDP growth through the creation of specialized industrial gases roles, helping equip local talent with advanced skills and expertise.