Saudi Arabia’s NEOM project takes a major stride towards sustainability with a SAR 600 million land lease agreement to establish a green industrial gases facility, supporting the kingdom’s Vision 2030 goals and industrial diversification.
Oxagon, the innovative industrial city within Saudi Arabia’s NEOM project, has taken a significant step towards becoming fully operational with a major land lease agreement signed with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG). The agreement encompasses a phased investment totalling SAR 600 million aimed at the establishment of an advanced industrial gases production and distribution facility within Oxagon’s Industrial Quarter, the city’s designated industrial zone.
Scheduled to break ground in February 2026, the facility’s initial phase will include the construction of core industrial gases infrastructure, offices, warehousing, and distribution capabilities. Operations are anticipated to commence later the same year, with subsequent development phases planned to begin in 2028. This facility represents a critical strategic move in Oxagon’s industrial development, signalling the city’s readiness to support tenants in ramping up production and accelerating broader industrial activity from 2026 onwards.
AHG’s planned facility will supply key industrial gases such as green oxygen, nitrogen, argon, and hydrogen. This suite of gases supports not only traditional manufacturing processes but also aligns with Saudi Arabia’s ambitious renewable energy transition and Vision 2030 goals aimed at economic diversification and sustainability. The production of low-carbon, green industrial gases locally will reduce reliance on imported supplies, minimise supply chain disruptions, and significantly cut transport-related carbon emissions, particularly those related to scope 3 value chain emissions. This localisation of supply is expected to enhance cost competitiveness and reliability for Oxagon’s tenants, facilitating cleaner and more sustainable manufacturing practices.
The partnership highlights AHG’s ongoing role as a long-term contributor to NEOM’s construction and industrial build-out, where it currently provides gases and equipment to contractors in northwest Saudi Arabia. By expanding its presence with this new facility, AHG aims to support the industrial ecosystem within Oxagon more comprehensively, enabling tenant companies to advance infrastructure projects with improved efficiency. Furthermore, this development will stimulate the Kingdom’s GDP growth through the creation of specialised industrial gases roles, fostering the development of local talent equipped with advanced skills in this crucial sector.
Vishal Wanchoo, CEO of Oxagon, stated that the collaboration exemplifies Oxagon’s readiness to attract world-class tenants and accelerate Saudi Arabia’s move towards a diversified and future-ready economy. He emphasised that leveraging AHG’s industrial gases expertise will underpin the creation of a streamlined local supply chain that meets the demands of modern industry while enabling cleaner manufacturing and energy solutions.
Khalid Abdullah Hashim, CEO of AHG Group Companies, expressed enthusiasm about contributing to Oxagon’s development plan. He underscored AHG’s commitment to providing cost-competitive, reliable products and services that support both international and local investors, while also advancing the clean industrial transformation occurring within Oxagon.
The growing demand for industrial gases is expected to rise alongside the influx of diverse industries such as manufacturing and transportation to Oxagon, underscoring the strategic importance of the new facility. By producing green industrial gases, Oxagon’s ecosystem will be positioned as a leader in sustainable industrial practices within the region.
Overall, this investment and partnership between NEOM and AHG demonstrate a decisive step towards operational readiness and sustainability in Oxagon’s ambitious industrial vision. It also aligns closely with Saudi Arabia’s broader economic and environmental objectives under Vision 2030, marking a substantial advancement in the Kingdom’s leadership on clean industrial innovation and infrastructure development.
- https://www.neom.com/en-us/newsroom/AHG-signs-land-lease-with-NEOM-for-industrial-gases-facility-in-Oxagon – Please view link – unable to able to access data
- https://www.neom.com/en-us/newsroom/AHG-signs-land-lease-with-NEOM-for-industrial-gases-facility-in-Oxagon – On 16 November 2025, Oxagon, NEOM’s reimagined industrial city, announced a land lease agreement with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG) for a phased investment of SAR 600 million. This investment aims to establish a state-of-the-art industrial gases production and distribution facility in Oxagon’s Industrial Quarter. The first phase, scheduled to commence in February 2026, will include essential infrastructure, offices, warehousing, and distribution capabilities, with operations expected to begin in late 2026. Subsequent phases are anticipated to start in 2028. This partnership signifies Oxagon’s readiness as an industrial hub, facilitating tenants to commence development and production from 2026 onwards. ([neom.com](https://www.neom.com/en-us/newsroom/AHG-signs-land-lease-with-NEOM-for-industrial-gases-facility-in-Oxagon?utm_source=openai))
- https://www.argaam.com/en/article/articledetail/id/1859367 – Oxagon, NEOM’s clean and advanced industries city, signed a land lease with Abdullah Hashim Industrial Gases & Equipment Co. Ltd. (AHG) to invest SAR 600 million in developing an advanced industrial gases production and distribution facility in Oxagon’s Industrial Quarter. Construction is set to begin in February 2026, with the first phase covering core infrastructure, offices, warehousing, and distribution channels. Operations are expected to commence by late 2026, with subsequent phases following in 2028. AHG will produce green oxygen, nitrogen, argon, and hydrogen, supplying Oxagon’s industrial tenants, boosting supply chains, cutting imports, and lowering emissions, while also supporting Saudi Arabia’s energy diversification drive. ([argaam.com](https://www.argaam.com/en/article/articledetail/id/1859367?utm_source=openai))
- https://www.arabianbusiness.com/industries/energy/ahg-to-invest-sar600m-in-new-industrial-gases-facility-at-neoms-oxagon – Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG) has signed a land lease agreement to establish a major industrial gases production and distribution facility in Oxagon, the reimagined industrial city within NEOM. The agreement represents a phased investment of SAR 600 million aimed at building a fully localised industrial gases supply chain to serve Oxagon’s growing manufacturing base and wider industrial network. Groundbreaking for the facility in Oxagon’s Industrial Quarter is planned for February 2026, with operations expected to commence before the end of the year. The initial phase will include core production infrastructure, offices, warehousing, and logistics capabilities, while further phases are expected to start in 2028. ([arabianbusiness.com](https://www.arabianbusiness.com/industries/energy/ahg-to-invest-sar600m-in-new-industrial-gases-facility-at-neoms-oxagon?utm_source=openai))
- https://www.worldconstructionnetwork.com/news/neom-ahg-sign-land-lease-industrial-gases-plant-oxagon/ – Saudi Arabia’s NEOM has finalised a land lease agreement with supplier Abdullah Hashim Industrial Gases & Equipment (AHG) for an industrial gases plant in Oxagon’s Industrial Quarter, Saudi Arabia. Under this SR600m ($159.91m) investment, AHG will build and operate the production and distribution facility. Construction is scheduled to begin in February 2026. The project will be executed in several phases. The initial phase will provide infrastructure for the production and distribution of industrial gases, along with offices, storage, and logistics facilities. The facility’s first phase is planned to become operational by the end of 2026. Additional phases are planned to start operations in 2028. ([worldconstructionnetwork.com](https://www.worldconstructionnetwork.com/news/neom-ahg-sign-land-lease-industrial-gases-plant-oxagon/?utm_source=openai))
- https://www.sustainabilitymenews.com/energy/renewable-energy-push-accelerates-as-ahg-neom-seal-landmark-deal-for-oxagon-industrial-hub – Oxagon, the reimagined industrial city of NEOM, has taken another decisive step toward operational readiness with a landmark land lease agreement signed with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG). The deal marks a phased investment of SAR 600 million to establish a state-of-the-art industrial gases production and distribution facility within Oxagon’s Industrial Quarter. Scheduled to break ground in February 2026, AHG’s project will be developed in multiple phases. The first phase will include essential industrial gases infrastructure, office space, warehousing, and distribution capabilities. Operations are expected to begin by late 2026, with additional phases slated for 2028. AHG’s facility will localize production of essential gases, reducing reliance on long-distance imports, cutting transport-related emissions, and boosting supply chain resilience. The phased plan includes the production of green oxygen, nitrogen, argon, and hydrogen—key enablers for sustainable manufacturing. This green-energy-aligned output will help global manufacturers reduce operating costs while achieving environmental targets, particularly around Scope 3 emissions. Strengthening NEOM’s long-term growth, AHG has already been a crucial partner in NEOM’s early construction activities, supplying industrial gases and equipment across northwest Saudi Arabia. The new Oxagon facility will deepen that contribution by supporting tenant infrastructure development and generating specialized jobs in the industrial gases sector. Aligned with Vision 2030, the project will elevate GDP growth, enhance local skill development, and fortify the Kingdom’s leadership in clean industrial innovation. ([sustainabilitymenews.com](https://www.sustainabilitymenews.com/energy/renewable-energy-push-accelerates-as-ahg-neom-seal-landmark-deal-for-oxagon-industrial-hub?utm_source=openai))
- https://www.onearabia.me/local/oxagon-signs-land-lease-with-ahg-industrial-gases-facility-011-131205.html – NEOM’s Oxagon has announced a significant land lease agreement with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG). This collaboration involves a SAR600 million investment to establish an advanced industrial gases production and distribution facility in Oxagon’s Industrial Quarter. The project will unfold in phases, with the first phase set to begin construction in February 2026 and operations expected by late 2026. The strategic partnership between NEOM and AHG marks Oxagon’s readiness as an industrial hub. It aims to facilitate the production and distribution of industrial gases, enabling tenants to commence development and production from 2026. This initiative aligns with Saudi Arabia’s vision for a diversified economy. The demand for industrial gases in Oxagon is projected to rise as more industries, including manufacturing and transportation, are drawn to the region. ([onearabia.me](https://www.onearabia.me/local/oxagon-signs-land-lease-with-ahg-industrial-gases-facility-011-131205.html?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative was first published on 16 November 2025, with no earlier versions found. It has been republished across multiple reputable outlets, including NEOM’s official website ([neom.com](https://www.neom.com/en-us/newsroom/AHG-signs-land-lease-with-NEOM-for-industrial-gases-facility-in-Oxagon?utm_source=openai)), Argaam ([argaam.com](https://www.argaam.com/en/article/articledetail/id/1859367?utm_source=openai)), and Asharq Al Awsat ([english.aawsat.com](https://english.aawsat.com/business/5209603-saudi-arabias-oxagon-signs-land-lease-ahg-industrial-gases-facility?utm_source=openai)). The consistent publication across these sources indicates high freshness. The narrative is based on a press release from NEOM, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found.
Quotes check
Score:
10
Notes:
Direct quotes from Vishal Wanchoo, CEO of Oxagon, and Khalid Abdullah Hashim, CEO of AHG Group Companies, appear in multiple reputable outlets, including NEOM’s official website ([neom.com](https://www.neom.com/en-us/newsroom/AHG-signs-land-lease-with-NEOM-for-industrial-gases-facility-in-Oxagon?utm_source=openai)) and Asharq Al Awsat ([english.aawsat.com](https://english.aawsat.com/business/5209603-saudi-arabias-oxagon-signs-land-lease-ahg-industrial-gases-facility?utm_source=openai)). The wording of these quotes is consistent across sources, indicating they are directly sourced from the press release.
Source reliability
Score:
10
Notes:
The narrative originates from NEOM’s official website, a reputable organisation. It has been republished by other reputable outlets, including Argaam ([argaam.com](https://www.argaam.com/en/article/articledetail/id/1859367?utm_source=openai)) and Asharq Al Awsat ([english.aawsat.com](https://english.aawsat.com/business/5209603-saudi-arabias-oxagon-signs-land-lease-ahg-industrial-gases-facility?utm_source=openai)), further confirming its reliability.
Plausability check
Score:
10
Notes:
The claims about the SAR 600 million investment, the phased development plan starting in February 2026, and the production of green industrial gases align with information from multiple reputable sources, including NEOM’s official website ([neom.com](https://www.neom.com/en-us/newsroom/AHG-signs-land-lease-with-NEOM-for-industrial-gases-facility-in-Oxagon?utm_source=openai)) and Asharq Al Awsat ([english.aawsat.com](https://english.aawsat.com/business/5209603-saudi-arabias-oxagon-signs-land-lease-ahg-industrial-gases-facility?utm_source=openai)). The narrative includes specific factual anchors, such as names, institutions, and dates, enhancing its credibility. The language and tone are consistent with official corporate communications, and the structure is focused on the main claim without excessive or off-topic detail.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is fresh, originating from a press release published on 16 November 2025 and republished across multiple reputable outlets. The quotes are consistent and directly sourced from the press release. The source is NEOM’s official website, a reputable organisation. The claims are plausible, supported by specific factual anchors, and the language and tone are consistent with official corporate communications. No credibility risks were identified.
