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

As part of a planned SAR600-million ($160 million) investment, AHG and NEOM, the developer of the Saudi futuristic city in the country’s northwest, will develop in multiple phases a state-of-the-art industrial gases production and distribution facility in Oxagon’s Industrial Quarter.

With ground-breaking 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, said the company in a statement.

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, it stated.

Vishal Wanchoo, the CEO of Oxagon, said: “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.”

As part of its phased development plan, AHG plans to produce green oxygen, nitrogen, argon and hydrogen.