Project Overview

OXAGON is NEOM's industrial city and port, positioned as a globally competitive hub for renewable energy manufacturing. Developed on the Red Sea Coast of northwest Saudi Arabia, it is also a major hub for AI-driven industries, advanced logistics, and green hydrogen production. 

It was launched by Crown Prince Mohammed bin Salman in late 2021, as one of four main NEOM sub-projects alongside The Line (linear city), Trojena (mountain resort), and Sindalah (yacht island).

Oxagon spans 48 km² in Tabuk Province, at a strategic location where the Gulf of Aqaba meets the Red Sea, one of the world's most important maritime trade corridors connecting Asia, Africa, and Europe. It is anticipated to house nearly 90,000 individuals by 2030. 

Saudi Arabia is allocating USD 12.8 billion to construct one of the largest data centers worldwide at Oxagon. DataVolt made an initial investment of USD 5 billion. The name ‘Oxagon’ was chosen due to the city’s octagonal layout. 

It is an industrial city under construction, exhibiting minimal environmental impact due to its reliance on 100% renewable energy systems. Furthermore, in July 2025, Oxagon conducted its first intermodal trial shipment from Egypt to Iraq via the Port of NEOM, demonstrating a new Red Sea logistics corridor that bypasses traditional routing.

Key Components of the NEOM Project

NEOM Oxagon Location Details

Oxagon City is located in northwest Saudi Arabia. Located on the Red Sea at the intersection of global trade lines, the NEOM Oxagon port links the region to international markets, attracting enterprises and promoting economic development. 

NEOM states that upon completion, the city will rank as the world’s most modern, sustainable, and efficient city. Its proximity to the Suez Canal, which facilitates almost 12% of global trade, provides Oxagon with a strategic edge.

Project Background

Oxagon is a vital element of the broader programme under Saudi Vision 2030. Its strategy was formulated by the Saudi Crown to diversify the nation’s economy, reducing its reliance on oil. NEOM described the 48 km² development zone as a reimagined industrial hub anchored by an operating port, pre-zoned industrial land, scalable infrastructure, competitive energy resources, and a strong digital backbone.

The idea behind the project is to combine industry, port logistics, and livable urban districts in one integrated place rather than separating factories, housing, and transport into different zones. NEOM presents it as an industrial city designed around sustainability, automation, and digital manufacturing, with a focus on renewable energy manufacturing and AI-driven industries.

The Oxagon Project is also designed to support Saudi Arabia’s wider industrial transformation and attract manufacturing and logistics investments to the Red Sea Coast.

Stakeholder Details

NEOM Oxagon Current Status

As of July 2026, the NEOM Oxagon Project is partially operational/under the active activation phase. Oxagon is still far from complete, and its larger industrial, logistics, and urban ambitions remain under phased development. 

NEOM has been prioritizing Oxagon as one of the more viable active nodes within the wider NEOM program, while some other parts of the mega-project have been slowed or reshaped. It says that the Port of NEOM has been operating since 2022, Oxagon Hive and other support facilities are already live, and the project’s core industrial area is being built out in phases. 

NEOM Oxagon Project Cost 

Project Scope 

Oxagon is the world's first and largest fully automated port and integrated logistics center. The onshore development is anticipated to be finished by 2030, with the objective of establishing the city’s logistics solutions facilities by 2025. Upon completion, it will serve as a home for some of the most innovative companies in the Kingdom.

Oxagon Village will provide inhabitants and guests with a variety of apartments, ranging from studio to five bedrooms, featuring views of courtyards, streetscapes, the Red Sea coast, and the Port of NEOM. Moreover, Oxagon Village will feature premier hospitality and retail establishments. Sustainable, on-demand, and shared mobility solutions will be available, along with sports and wellness facilities, schools, and a state-of-the-art health center.

A significant achievement has been the incorporation of autonomous electric vehicles into its logistical network. These vehicles, coupled with AI-driven route optimization algorithms, have decreased delivery times by 20 percent and operational expenses by 15 percent. IoT sensors have advanced predictive maintenance, minimizing downtime and improving overall equipment efficiency. Collectively, these advancements are enhancing product quality, fostering innovative business models, and facilitating more intelligent scalability.

The use of blockchain in supply chain management aims to enhance transparency and minimize fraud. The ongoing exploration of quantum computing holds the promise of addressing intricate logistical issues with remarkable speed. These advancements are expected to contribute to a projected 10 percent annual increase in Oxagon’s industrial output over the next five years.

Project Benefits

The oxagon port will have the following benefits: 

• Increased Trade Capacity: Crown Prince MBS aims to handle 12% of global trade passing through the Suez Canal annually through this project. 
  

• Job Opportunities: The project is expected to create over 70,000 jobs at Oxagon by 2030. 
  

• Cutting Edge Technology: Oxagon has been incorporated with the most advanced technologies, such as autonomous pods and shuttles, urban air mobility, green heavy-duty commercial vehicles, and green watercraft. 
  

• Sustainability: Oxagon promises to achieve net-zero carbon using sustainable energy sources such as solar PV, green hydrogen, battery storage, and on-shore wind. This helps promote sustainable practices and reduce environmental impact.

NEOM Oxagon Project Latest News & Updates

As of May 2026, Oxagon was one of NEOM’s most credible near-term deliverables, while also noting that the port terminal originally targeted for early 2025 had been rescheduled to 2026, making that a material schedule change. Furthermore, NEOM halted work on The Line until after 2030, showing a broader shift toward practical infrastructure across the NEOM program. 

In July 2026, Oxagon’s strongest update was the USD 5 billion DataVolt AI campus commitment, which marked the site’s biggest move toward data centres and AI-driven industry and reinforced Oxagon’s role as NEOM’s most practical near-term development. 

Conclusion

Oxagon is not just a city it is a new chapter in the transformation of Saudi Arabia. It is an ideal balance between advancement, sustainability, and economic growth. The city is a visionary project not only for the country but for the whole world. It will be the first floating industrial city in the world.

This initiative is a part of Saudi Arabia’s Vision 2030. A lot of investment is being done on the project, and it will be one of the most advanced technological developments. This first and largest fully automated port and integrated logistics center in the world promises to achieve 100% carbon neutrality, thus promoting sustainability.

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