Saudi Arabia’s transformation journey is moving at lightning speed and nowhere is this momentum more visible than in NEOM’s Oxagon project. Oxagon is an impressive-looking, futuristic industrial and logistics hub that will overhaul global manufacturing as we know it. With Phase 2 now in progress, Oxagon is shifting from land preparation to offshore engineering. This is the latest step in creating the world’s largest floating industrial structure. Strategically located on the Red Sea (through which 13% of global trade passes) Oxagon is more than a mega-project, it’s a living laboratory for advanced manufacturing, renewable energy and smart logistics.

Reconfiguring How Industries Operate

Built entirely on renewable energy and designed around circular-economy principles, Oxagon exemplifies how Industry 4.0 and sustainability can coexist at scale. It will integrate IoT, robotics, AI and automation to reconfigure how industries operate. The objective is to seamlessly link production, shipping and supply chain ecosystems in an optimised hub.

As a cornerstone of Saudi Arabia’s Vision 2030, Oxagon underscores the Kingdom’s ambition to diversify beyond hydrocarbons, attract international investment and establish itself as a global leader in high-tech industrial innovation.

Phase 2 Focuses on Offshore Engineering

This latest development marks a turning point. Belgium’s DEME Group (world leader in dredging, offshore energy, environmental works) has started large-scale earthmoving works to prepare the terrain for offshore expansion. Cutter-suction dredging is scheduled to begin later this year, laying the groundwork for the floating port and industrial complex.

Once complete, Oxagon will not only transform Saudi Arabia’s west coast, it will set new benchmarks in maritime engineering, port automation and smart logistics. It will be a showcase of how digital and physical infrastructure can converge to drive efficiency and resilience.

Key Industrial Pillars Emerging in Oxagon

• Green Hydrogen Leadership

NEOM Green Hydrogen Company is on track to deliver one of the world’s largest green hydrogen facilities, expected to be operational by 2026. With a capacity to produce 600 tonnes per day, it will power global clean-fuel markets and save millions of tonnes of CO₂ every year.

• Next-Gen Data Centres

DataVolt is building a 300 MW renewable-powered, modular data centre (scalable to 1.5 GW) to establish Oxagon as a regional epicentre for cloud, AI and digital services.

• Smart Factory Transformation

Through a strategic partnership with the Ministry of Industry, Oxagon will help modernise more than 4,000 Saudi factories with AI, automation and IoT. This collaboration will position the Kingdom at the forefront of the global manufacturing renaissance.

• Human-Centric Smart Living

To support its growing industrial ecosystem, Oxagon is developing a residential village for 17,000 residents, including schools, healthcare and lifestyle facilities. This will ensure that Oxagon is not only a beacon of innovation, but also a people-driven, thriving community.

Why Oxagon Matters for Advanced Manufacturing and Logistics

Oxagon Phase 2 is not just another construction milestone. It is the strategic linchpin in building a resilient, digitally integrated and climate-positive industrial future. By blending renewable energy, AI-driven logistics and advanced manufacturing ecosystems, Saudi Arabia is sending a clear signal: the future of industry is being built here.

For global investors, technology start-ups and supply chain leaders, Oxagon offers a first-mover advantage into the next wave of industrial transformation. As Oxagon Phase 2 advances, Saudi Arabia is solidifying its position as a beacon of industrial innovation. The project embodies the Kingdom’s bold vision: to create a high-tech industrial base that not only supports economic diversification but also redefines how the world thinks about manufacturing and logistics.