Oxagon and AHG Signs SAR 600 million Land Lease Agreement

Oxagon, the reimagined industrial city of NEOM, has announced the signing of a land lease agreement between NEOM and Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG) – a leading provider of industrial gases to industries across Saudi Arabia.

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 phanse will include essential industrial gases infrastructure, offices, warehousing and distribution capabilities. Operations are also 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 the production and distribution of industrial gases paving the way for tenants to ramp up development and begin production from 2026 onwards.

The demand for industrial gases in Oxagon is anticipated to grow as the region continues to attract 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 (CO₂) emissions from transport. Additionally, it will enhance cost competitiveness for tenants by providing them with more affordable and reliable access to essential industrial gases. This is a step forward in addressing some of the broader environmental impacts of manufacturing, including value chain (scope 3) emissions.

As part of its phased development plan, AHG plans 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.

A long-term partner of NEOM’s development, AHG currently supports the broader construction underway in northwest Saudi Arabia by supplying industrial gases and equipment to contractors. This new facility will strengthen those efforts, while also enabling tenants in Oxagon to advance infrastructure projects more efficiently. In line with Saudi Vision 2030, development of the facility will also stimulate GDP growth through the creation of specialized roles in the industrial gases sector, equipping local talent with advanced skills and expertise.