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 SAR600 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.
The partnership underscores Oxagon’s readiness to enter its activation phase, as the production of industrial gases will enable tenants to commence manufacturing operations in 2026.
Vishal Wanchoo, 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. 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.”
Khalid Abdullah Hashim, CEO of the AHG Group Companies, said: “We are excited to be part of Oxagon’s development plan and 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 land lease agreement, followed by our investment plan in low-carbon industrial gases production facilities, demonstrates our commitment to supporting the clean industrial transformation taking place in Oxagon.”
The new facility will enhance local production and distribution of industrial gases such as oxygen, nitrogen, argon and hydrogen, helping to reduce reliance on imports and cut transport-related carbon emissions. By offering a reliable and cost-effective supply, it will also improve the competitiveness of Oxagon’s industrial tenants and support cleaner manufacturing processes.
AHG’s investment will contribute to Saudi Arabia’s broader Vision 2030 goals by driving economic diversification, supporting renewable energy adoption and creating specialised employment opportunities in the industrial gases sector.
The company, already a long-term partner in NEOM’s development, supplies industrial gases and equipment to ongoing construction projects across the region. Its latest venture strengthens that role, positioning AHG as a key enabler of Oxagon’s industrial ecosystem and the Kingdom’s transition toward a low-carbon economy.
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