Saudi company AHG signs deal with Neom to establish industrial gases facility in Oxagon

 

Saudi company AHG to set up industrial gases facility in Neom's Oxagon

Oxagon, NEOM’s reimagined industrial city, has announced the signing of a land lease agreement with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG), a leading industrial gases provider in Saudi Arabia. The agreement marks a phased investment of SAR 600 million to develop a localized industrial gases production and distribution hub in Oxagon and across the wider NEOM region.

Under the agreement, AHG will construct a state-of-the-art facility in Oxagon’s Industrial Quarter, with groundbreaking set for February 2026. The first phase will include core industrial gases infrastructure, offices, warehousing, and distribution capabilities. Operations are expected to begin in late 2026, with additional phases scheduled to roll out from 2028.

The partnership underscores Oxagon’s readiness as a next-generation industrial city, enabling tenants to accelerate development and start production from 2026. It also lays the foundation for a robust local supply chain that supports the region’s industrial activation phase.

 

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“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,” said Vishal Wanchoo, CEO of Oxagon. “By leveraging AHG’s expertise, we are building a streamlined industrial gases supply chain that supports modern manufacturing and advances the shift toward sustainable energy solutions.”

Khalid Abdullah Hashim, CEO of the AHG Group Companies, added: “We are excited to be part of Oxagon’s development and to support international and local investors with cost-competitive, high-reliability products and services. Our investment in low-carbon industrial gases facilities reflects our commitment to the clean industrial transformation underway in Oxagon.”

Demand for industrial gases in Oxagon is expected to grow as the city attracts manufacturers, logistics operators, and advanced industries. Localized production through AHG’s facility will reduce reliance on long-distance imports, minimize supply chain disruptions, and lower CO₂ emissions associated with transport. It will also enhance cost competitiveness by providing tenants with reliable and affordable access to essential industrial gases—a key factor in reducing broader value chain (Scope 3) emissions.

 

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As part of its phased development, AHG plans to produce green oxygen, nitrogen, argon, and hydrogen, supporting Saudi Arabia’s renewable energy and sustainability targets. This will offer global manufacturers a strategic advantage by helping reduce operating costs while meeting environmental commitments.

AHG is already a long-standing partner in NEOM’s development, supplying industrial gases and equipment to ongoing construction activities across northwest Saudi Arabia. The new facility will strengthen these efforts and enable Oxagon tenants to advance infrastructure projects more efficiently. In alignment with Saudi Vision 2030, the project will also contribute to GDP growth by creating specialized roles and developing local talent in the industrial gases sector.

Source: Neom