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Oxagon CEO: NEOM Port to Redefine Global Trade

NEOM Port (Asharq Al-Awsat)
NEOM Port (Asharq Al-Awsat)
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Oxagon CEO: NEOM Port to Redefine Global Trade

NEOM Port (Asharq Al-Awsat)
NEOM Port (Asharq Al-Awsat)

Vishal Wanchoo, CEO of Oxagon, highlighted the city as a beacon of innovation and sustainability at the heart of Saudi Arabia’s transformation, saying that the NEOM Port is set to reshape global trade.

Oxagon, a reimagined industrial city within NEOM, offers a clean ecosystem attracting factories of the future, relying entirely on renewable energy to achieve net-zero emissions. Its strategic location on the Red Sea, near global shipping lanes, positions it as a key hub for major markets and urban centers.

Embracing Sustainable Solutions

Discussing Oxagon’s strategic vision, Wanchoo noted that traditional industries often pose environmental and health risks and contribute to climate change. He emphasized the urgency of adopting sustainable solutions, which has prompted sectors to accelerate the transition to clean technologies and green energy.

“Oxagon provides a clean industrial ecosystem that welcomes factories of the future from across the globe. By relying solely on renewable energy, we offer manufacturers a platform to achieve their net-zero goals,” Wanchoo explained.

Strengthening Local Supply Chains

Wanchoo underscored Oxagon’s alignment with Saudi Vision 2030, which prioritizes developing promising industries, enhancing logistics, and bolstering local, regional, and international trade networks.

“Our focus is on developing seven industrial zones, along with vibrant urban areas that stimulate economic growth through retail and hospitality,” Wanchoo stated. He emphasized Oxagon’s role in making Saudi Arabia a regional hub for imports and exports through the advanced NEOM Port on the Red Sea, connecting global trade routes.

He added: “With over 13% of global trade passing through the Suez Canal annually, NEOM Port’s location enhances its significance as a gateway between Europe and Asia.”

Attracting Foreign Investments

Looking ahead, Wanchoo outlined Oxagon’s goal of driving economic diversification, fostering innovation, and attracting foreign investments over the next five years.

“We are actively engaging with major manufacturers to enhance our industrial ecosystem, strengthen local supply chains, and establish Saudi Arabia as a regional and global manufacturing hub,” he said.

Environmental Commitment

Wanchoo highlighted Oxagon’s commitment to sustainable construction methods. The pilot integrated community, Oxagon Hive, exemplifies this by reducing waste, minimizing costs, and ensuring scalability.

He noted that since taking over Duba Port in 2022, Oxagon has made significant strides in transforming it into a sustainable and automated facility.

“We have reused 100% of excavated materials and recycled decommissioned port facilities for new developments,” he said.

Challenges and Opportunities

“Building a new industrial model from scratch is complex, but we prioritize state-of-the-art infrastructure to support advanced, clean manufacturing,” the CEO of Oxagon remarked. He underlined the importance of partnerships with innovative companies and the adoption of cutting-edge technologies like AI and robotics to address global challenges.

Pioneering Green Hydrogen

Oxagon is also home to the world’s largest green hydrogen plant, developed by NEOM Green Hydrogen Company. Scheduled to produce up to 600 metric tons of carbon-free hydrogen daily by 2026, the plant will operate entirely on solar and wind energy. Currently, 60% of the facility’s infrastructure has been completed.

The project relies on NEOM Port for equipment deliveries, including electrolyzers, wind turbines, and hydrogen storage vessels, crucial for the plant’s operation.

Research and Innovation

Oxagon’s innovation hub, Oxagon Innovation Bay, will become operational in 2025, powered by NEOM Energy & Water’s Enowa-Circle central power station. Initial projects include launching a 20 MW electrolyzer to produce 8 tons of hydrogen daily, providing valuable data to optimize the main plant’s performance.

Milestones of 2023 and 2024

Reflecting on recent achievements, Wanchoo highlighted the 2023 launch of the first global accelerator in partnership with McLaren, focusing on supply chain challenges. Seven startups were selected out of 80 applicants, with funding and connections to venture capital provided. Three pilot projects are now underway in NEOM.

In 2024, milestones include opening NEOM Port to investors and advancing seven selected startups from over 100 participants to the final stages of development.

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Business

Riyadh Introduces New Mechanism to Correct Property Lease Violations

A project by the Ministry of Municipal and Housing Affairs in Riyadh (SPA)
A project by the Ministry of Municipal and Housing Affairs in Riyadh (SPA)
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Riyadh Introduces New Mechanism to Correct Property Lease Violations

A project by the Ministry of Municipal and Housing Affairs in Riyadh (SPA)
A project by the Ministry of Municipal and Housing Affairs in Riyadh (SPA)

The General Real Estate Authority has posted a draft framework on the government’s “Istitlaa” platform to regulate the correction of violations related to rules governing relations between landlords and tenants.

The aim is to ensure compliance with regulations and safeguard fairness and stability in rental relationships.

The draft coincides with the government’s recent issuance of rules to regulate landlord-tenant relations, implementing earlier directives from Crown Prince and Prime Minister Prince Mohammed bin Salman to launch a package of new measures for Riyadh’s rental market.

The move responds to mounting challenges in the capital in recent years concerning rising residential and commercial rents. The rules introduce several controls, the most prominent of which is a five year freeze on annual increases to total rent values in property lease contracts.

The draft, reviewed by Asharq Al-Awsat, identifies four violations that landlords must correct. The first concerns any increase in the total rent value of a property in Riyadh. Landlords must adjust such increases to comply with the new rules within the specified period.

The second violation relates to raising the rent of a vacant property in Riyadh above the value of its most recent contract. The rent must be corrected in line with the regulations.

Refusal to register

The third violation concerns a landlord’s failure to submit a request to register a lease contract on the electronic Ejar network when the contract is not already recorded. The draft requires landlords to register these contracts on the Ejar platform.

The fourth violation relates to a landlord’s refusal in Riyadh to renew a lease and forcing a tenant to vacate in cases not permitted under the rules. The landlord must correct this if the tenant still wishes to renew.

Under the recently issued rules, landlords in Riyadh may not refuse to renew a contract or force a tenant to vacate if the tenant wishes to renew, except in three cases: the tenant’s failure to pay, structural defects that affect the safety of the property or its residents according to an approved technical report from the competent government authority, or the landlord’s desire to use the residential unit for personal use or for the use of a first degree relative.

Dispute resolution

The draft states that if the correction period expires without the violation being remedied, the authority may amend the total rent value or renew the lease contract, depending on the case, in line with the rules.

If the violation cannot be corrected because the landlord has leased the property to another good faith tenant in breach of the rules while the previous tenant still seeks to renew the same unit, the parties will be directed to the competent court to resolve the dispute.

The corrective measures do not affect a harmed party’s right to claim compensation from the party responsible for the violation before the competent court. The rules will take effect from the date they are approved and posted on the General Real Estate Authority’s website.

Automatic renewal

The rules regulating landlord-tenant relations include a five year freeze on annual increases in total rent values for residential and commercial leases, whether existing or new.

The total rent of previously leased properties will be fixed at the value of the most recent contract, while rents for properties that have never been leased will be set according to agreements between the parties.

The new rules also require landlords to register unrecorded leases on the Ejar network.

They further organize automatic renewal procedures, stating that lease contracts across all Saudi cities will renew automatically unless either party notifies the other of non renewal at least sixty days in advance.

Violators will face fines of up to the equivalent of twelve months of rent for the unit in question, in addition to correcting the violation and compensating the harmed party. The board of the General Real Estate Authority will issue a schedule of violations and corresponding fines.

Notably, the new rules allow for a reward of up to twenty percent of the collected fine for individuals who report violations, provided they are not among those responsible for enforcing the regulations.

Business

NEOM to Begin First Commercial Green Hydrogen Output in 2027

Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat
Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat
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NEOM to Begin First Commercial Green Hydrogen Output in 2027

Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat
Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat

Saudi Arabia’s NEOM, the Public Investment Fund’s flagship development, is accelerating work as the Oxagon industrial city and the NEOM Green Hydrogen project move closer to production and operation.

Together, the two ventures are set to anchor the country’s shift toward clean energy and advanced industries, supporting Vision 2030 goals to cut carbon emissions and diversify the economy by building integrated industrial and technology ecosystems powered by renewable energy and innovation.

The progress reinforces NEOM’s position as a global hub for sustainable industries and future technologies.

Operations and maintenance

Wesam Alghamdi, chief executive officer of NEOM Green Hydrogen Company, said the facility is preparing to begin commercial production in 2027, following testing and commissioning phases scheduled for 2026.

He said the project is one of the most important pillars of the kingdom’s clean-energy transition and is aligned with Vision 2030 targets for decarbonization and net zero emissions.

He said the company is a joint venture between ACWA Power, Air Products and NEOM, and is located in Oxagon, the industrial city within the wider NEOM project.

The project consists of three primary sites: the hydrogen plant in Oxagon, a solar field about 80 kilometers to the east, and a wind turbine site about 120 kilometers to the north.

Speaking to Asharq Al-Awsat, he said the project will generate a total of 4 gigawatts of power for the hydrogen plant by the end of 2026, with commercial operations to start in 2027.

The plant will be able to produce 600 tons of hydrogen a day, which will be converted into 1.2 million tons of ammonia annually and shipped through a dedicated port that includes a purpose-built berth.

He added that construction began about two years ago and that more than 80 percent of the work is now complete. Solar and wind farms have reached advanced stages and are ready to supply power for testing and commissioning in 2026.

He said the company is not only building the plant but is also building its institutional structure. The workforce has reached about 350 employees, and the company has recruited the staff needed for operations, maintenance and supporting roles. It has also launched specialized training programs to prepare new graduates for careers in the emerging sector.

Alghamdi said the company’s location in Oxagon and its proximity to the hydrogen plant’s port were critical to the project’s progress.

All wind turbines were imported through NEOM Port and Oxagon’s logistics network, along with the main equipment for the hydrogen plant, including hydrogen storage vessels and the cooling box, which is a key component of the air separation unit used to produce nitrogen. Many other pieces of equipment also arrived through the NEOM and Oxagon port facilities.

He said Oxagon provides industrial investors with an integrated ecosystem that includes licenses, permits, port services and engineering and logistics support, helping the project achieve major milestones during execution.

The chief executive said what is being built is not just a plant but the start of a new industry that will serve as a global model proving that large-scale hydrogen production is possible.

On the economic and social impact, he said the company will create between 300 and 350 direct jobs at NEOM Green Hydrogen Company, many of which have already been filled. He said the project will also generate a multiplier effect of six to seven times in indirect jobs across supporting sectors.

He said the project’s presence in NEOM will open opportunities for developing upstream and downstream services, leading to continuous industrial support for long-term maintenance and operations.

He said the kingdom’s hydrogen industry will attract specialized companies in fields such as artificial intelligence, digitalization and engineering solutions, making it a new driver for Saudi economic diversification.

Future opportunities

Vishal Wanchoo, chief executive of Oxagon, said the project is the home of advanced and clean industries in NEOM and is one of the main engines of its economy. He said Oxagon has seen significant progress since its plan was launched in 2021.

The city is located on the Red Sea around NEOM Port, in a strategic position that offers excellent access to many regions, especially Europe and Africa, making it an ideal location for exports as well as serving Saudi Arabia.

He told Asharq Al-Awsat that NEOM Port is already operational and that efforts are under way to attract industrial companies to establish operations in Oxagon.

The NEOM Green Hydrogen project is the first of the major ventures, he said, describing it as a large-scale project for producing green hydrogen.

He added that Oxagon is developing an integrated renewable-energy ecosystem and expanding artificial intelligence data centers while strengthening the wider AI environment, which are among the industrial city’s core priorities.

He said NEOM Port is supporting the green hydrogen project by providing materials and handling complex shipments. He expressed strong optimism about the future opportunities linked to the project.

He said an integrated renewable-energy ecosystem is one of Oxagon’s top priorities, noting that work on green hydrogen began about four years ago and highlighted the importance of developing all components of the renewable-energy system to support the kingdom and its export capabilities as it transitions from traditional to clean energy.

He said Oxagon’s first three pillars focus on large-scale local manufacturing of wind-energy technology, midstream and end-stage production of solar-energy technologies, including solar cells, modules and raw materials, all of which will be produced in high-capacity factories capable of meeting Saudi Arabia’s renewable-energy needs and serving export markets.

He said work is also progressing on battery technologies, which he described as a central part of the renewable-energy system.

On clean and tech-driven industries, he said all Oxagon activities revolve around renewable energy, which is inherently clean.

The goal is not only to manufacture renewable-energy components but to power all industries in Oxagon entirely with renewable energy.

He noted that NEOM Green Hydrogen Company is one of the largest renewable-energy production projects and operates entirely on clean energy, enabling it to supply the same power to other industries in Oxagon.

He said the city’s technology focus is centered on artificial intelligence, and that there is a strong link between AI and renewable energy because one of the biggest challenges facing AI today is sustainability, given its high consumption of energy and water for cooling.

Oxagon aims to adopt sustainable solutions, including a major AI data center that will run on renewable energy and use seawater for cooling to ensure sustainable operations.

He said the goal is to move forward with discussions and finalize agreements that allow companies to launch operations. The plan is to start industrial production before the end of 2026 and reach full manufacturing capacity by 2027, amid rapid growth in renewable-energy and AI projects.

Business

UAE’s AD Ports Group Inks $22 Mn Deal for Stake in Latakia Container Terminal

The Abu Dhabi-based firm inked the deal with French shipping giant CMA CGM for a 20 percentage stake in the Latakia International Container Terminal. WAM
The Abu Dhabi-based firm inked the deal with French shipping giant CMA CGM for a 20 percentage stake in the Latakia International Container Terminal. WAM
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UAE’s AD Ports Group Inks $22 Mn Deal for Stake in Latakia Container Terminal

The Abu Dhabi-based firm inked the deal with French shipping giant CMA CGM for a 20 percentage stake in the Latakia International Container Terminal. WAM
The Abu Dhabi-based firm inked the deal with French shipping giant CMA CGM for a 20 percentage stake in the Latakia International Container Terminal. WAM

AD Ports Group of the United Arab Emirates (UAE) signed a $22 million agreement Thursday for a stake in the container terminal at Syria's port in Latakia.

The Abu Dhabi-based firm inked the deal with French shipping giant CMA CGM for a 20 percentage stake in the Latakia International Container Terminal, AD Ports Group said in a statement.

The Syrian government signed a 30-year contract in May with the French firm to run the Mediterranean port and modernize it, including the development of infrastructure to allow the entry of larger vessels previously unable to access it.

"We are pleased to broaden our long-standing partnership with our valued partner, CMA CGM Group," AD Ports Group chief executive Mohamed Juma Al Shamisi said.

"This strategic agreement reflects the growing international collaboration between our organizations and reinforces AD Ports Group's position as a global enabler of trade."

CMA CGM had operated the port's container terminal since 2009, during the rule of former president Bashar al-Assad, under a previous contract that was renewed several times.