Oxagon, the reimagined industrial city of NEOM, announced on Sunday the signing of a land lease agreement with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG).
As part of the $160 million investment, AHG will develop in multiple phases a state-of-the-art industrial gases production and distribution facility in Oxagon’s Industrial Quarter.
With groundbreaking scheduled for February 2026, the first phase will include essential industrial gases infrastructure, offices, warehousing and distribution capabilities, Oxagon said in a statement.
Operations are also due to commence in late 2026, with subsequent phases expected to start in 2028.
According to the statement, the 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.
“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,” CEO of Oxagon Vishal Wanchoo said.
“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.”
For his part, CEO of the AHG Group Companies Khalid Abdullah Hashim said: “We 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.”
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,” the statement said.
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.
In line with Saudi Vision 2030, the development of the facility will also stimulate GDP growth by creating specialized roles in the industrial gases sector and equipping local talent with advanced skills and expertise.
