NEOM Oxagon: A Reimagined Industrial City
Table of Contents
| Project at a Glance | |
| Project Name | Oxagon |
| Project Type | Greenfield |
| Project Location | Saudi Arabia |
| Sector | Infrastructure |
| Sub sector | Floating City |
| Project Area | 48 km² 7 km in width |
| Project Value | USD 500 billion |
| Project Status | Ongoing |
| Project Developer | NEOM green hydrogen company |
| Project Operator | Kerten Hospitality Group, NEOM |
| Project Designer | Gensler |
| Project Announced | 16 Nov 2021 |
| Project Completion Date | 2030 |
| Special Mention | World's Largest Floating Structure |
Oxagon was inaugurated in 2021 by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz.
After completion, it will be the largest floating industrial city globally, situated in the southwest region of NEOM.
It is anticipated to house approximately 90,000 individuals by 2030.
Saudi Arabia is allocating USD 12.8 billion to construct one of the largest data centers worldwide at Oxagon. An initial investment of USD 5 billion has been made by DataVolt.
The designation "Oxagon" was chosen due to the city's octagonal layout.
It is the most sophisticated industrial city under construction, exhibiting minimal environmental impact due to its reliance on 100% renewable energy systems.
Project Background
.webp)
Oxagon is a crucial element of the broader program termed Saudi Vision 2030. This innovative strategy was formulated by the Saudi Crown to diversify the nation's economy, reducing its reliance on oil. Salman Bin Abdulaziz Al-Saud and Mohammed bin Salman have announced 47 significant initiatives as part of this transformative initiative, with Oxagon being one of them. This highlights the leadership's steadfast dedication to promoting sustainability and encouraging innovation inside the nation, both in the 21st century and in the future.
Location Details
.webp)
The Oxagon city is located in northwest Saudi Arabia. Situated on the Red Sea at the intersection of global trade lines, the NEOM Oxagaon port links the region to international markets, attracting enterprises and promoting economic development. It is experiencing a significant transformation and has broadened its service offerings to include general and container cargo handling, ferry services, warehousing, and additional services. Upon completion, the city will rank among the world's most modern, sustainable, and efficient cities. The city's proximity to the Suez Canal, which facilitates almost 12% of global trade, provides Oxagon with a strategic edge.
Also Read: You Need To Know About NEOM Project in Saudi Arabia
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.
| Key Components | |
| Autonomous and Sustainable Mobility | Autonomous pods and shuttles, urban air mobility, green heavy duty commercial vehicles, green watercraft |
| Sustainable food production | Greenhouses, aquaculture, alternative meat, sustainable packaging |
| Renewable energy | Solar PV, green hydrogen, battery storage, on-shore wind for energy transition |
| Health and Wellbeing | Pharma, biotech,nutrition, medtech |
| Modern Construction | Modular construction, 3D printing sustainable steel, zero emission heavy machinery |
| Water Innovation | Seawater desalination, brine management, wastewater treatment, system management devices |
| Technology and Digital | Industrial, service and general-purpose robots. communication infrastructure for 5G+, space systems, electronic components, 3D printing equipment |
Track Latest Construction Projects in Saudi Arabia Unlock the Next Big Project!
Important Projects
Some of the notable projects that will be built in Oxagon include the following,
| PROJECT | DETAILS |
| Port of NEOM | Oxagon will have a state-of-the-art sustainable port featuring a fully integrated supply chain, logistics, and rail delivery system. It will provide access to international commerce routes. The supply chain platform will support NEOM’s people and economy through an integrated physical and digital interface. It will be the world's first integrated port and supply chain system. |
| WADI | A natural open space and protected wadi where locals and visitors both will be able to enjoy walking and cycling along routes and tracks that have been specifically designated for these activities. |
| Oxagon Innovation Bay | It is a vibrant ecosystem for inventors and entrepreneurs that helps them bring ideas to market in a digitally sophisticated community. Research and innovation facilities will attract next-generation industries to Oxagon. A fully digitized Innovation District and Campus will be part of this infrastructure. |
| AI (artificial intelligence) Data Center Facility | Neom and DataVolt have signed an investment agreement to construct a 1.5GW AI data center in Oxagon. This will mark a substantial milestone in enhancing the Kingdom's status as a digital leader in the region. The initial phase of construction is scheduled for completion by 2028. |
Project Cost
Oxagon is an integral element of NEOM, a proposed zero-emission megacity with an estimated cost of USD 500 billion. This ambitious proposal lays out a city constructed from the ground up, adhering to the highest standards of sustainability and technological innovation.
The Public Investment Fund is crucial in financing Oxagon. Saudi Aramco, the state-owned oil behemoth, serves as a significant source of revenue. King Salman and MBS have promoted significant alterations in revenue flow and ownership arrangements. In 2019, Saudi Aramco conducted an initial public offering (IPO), directing the funds into the Public Investment Fund (PIF) for investment in innovative initiatives such as Oxagon. The NEOM Investment Fund is another source of funding that will be provided for this project.
Contractors Involved
The contractors that are involved in building this mega city are:
| CONTRACTOR | INVESTMENT | CONTRACT |
| Joint venture of local firm El-Seif Engineering Contracting, Egyptian contractor Hassan Allam Construction and Beijing-headquartered China Harbour Engineering Company | SR 4 billion (USD 1 billion) | design-and-build contract to deliver infrastructure and building works for Terminal 1 of the port at the Oxagon industrial city development |
| Boskalis, Besix and the local Modern Building Leaders (MBL) | SR 3 billion (USD 800 million) | deliver the first phase of the port expansion |
| Joint venture of Italy-based Webuild and Riyadh-headquartered Shibh Al-Jazira Contracting, known as Sajco | SR 8 billion (USD 2 billion) | construction of the Connector South rail line that will link its industrial city OXAGON with The Line development. |
Track Latest Construction Projects in Saudi Arabia Unlock the Next Big Project!
Project Benefits
The oxagon port will have the following benefits:
Increased Trade Capacity
Crown Prince MBS aims to facilitate 14 percent of the worldwide trade that transits through the Suez Canal annually through this project.
Job Creation
It is anticipated that by the year 2030, a total of 70,000 jobs will be generated at Oxagon.
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 100% carbon neutrality by using sustainable energy sources such as solar PV, green hydrogen, battery storage and on-shore wind. This will help in promoting sustainable practices and reduce environmental impact.
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.
Also Read: NEOM The Line: City of The Future
Connect with decision-makers of the latest Construction plant projects in Saudi Arabia for business opportunities.
Subscribe to Blackridge's upcoming and ongoing construction projects database in Saudi Arabia to get access to reliable and high-quality insights on upcoming, in-progress, and completed construction/EPC projects in Saudi Arabia.
Our user-friendly platform provides essential details, timely updates, key stakeholder contact information, and business opportunities tailored for engineering companies, industry professionals, investors, and government agencies.
Start a free demo to take your business to the next level!
Leave a Comment
We love hearing from our readers and value your feedback. If you have any questions or comments about our content, feel free to leave a comment below.
We read every comment and do our best to respond to them all.