oxagon neom

Oxagon, the world’s largest floating industrial complex 

In this article, you will discover what Oxagon truly is : an integral part of Saudi Arabia's NEOM project, envisioned to become one of the most prominent maritime hubs globally. We explore how this innovative industrial complex, uniquely powered by renewable energy, aligns with Saudi Arabia's commitment to sustainability and economic diversification under its Vision 2030. Learn about Oxagon's role in transforming the maritime sector and its potential impact on the kingdom's future in the global economic landscape.

What is Oxagon? 

Located on the Red Sea coast, Oxagon, which will be considered the floating industrial complex, is set to offer direct connectivity to NEOM and other regions as well as a city 100 percent powered by renewable energy

The area will have an interesting octagonal shape, with part of it on land and the other piece lying on the Red Sea, designed to be a good alternative to shipping traveling through the Suez Canal and to minimize the impact on the environment. 

“It will contribute to Saudi Arabia’s regional trade and commerce and support creating a new focal point for global trade flows.”
Author / source

The words used by Crown Prince of Saudi Arabia Mohammed bin Salman, also known as MBS, highlight the importance of the Oxagon project for Saudi Arabia’s government and its NEOM project. 

The hub will reportedly establish one of the world’s first fully integrated port and supply chain ecosystems for NEOM, where logistics and rail delivery facilities are set to be unified in order to produce zero carbon emissions and follow Vision 2030’s idea of a sustainable environment for its residents and visitors. 

“Oxagon will be the catalyst for economic growth and diversity in NEOM and the Kingdom, further meeting our ambitions under Vision 2030,”
MBS wrote.

Due to its complexity, the plan will integrate many technology assets that will be able to reach Oxagon’s goals, including features of Industry 4.0 and a real-life testing environment, to provide a top-notch quality of life to its residents and a rapid manufacturing process for companies. 

What are Oxagon main features ?

what is oxagon
Source : neom

Just like every big project, Oxagon is composed of many features that, together, are set to transform the location into one of the most important trading hubs on our planet. Here they are. 

A port integrated with the supply chain 

As mentioned previously, one of the main goals involving the project is to establish a sustainable area with a fully integrated supply chain system, which will end up providing connectivity to global trade routes. 

The plan has the creation of the Integrated Digital Supply Chain Orchestration Platform (IDSCOP) as one of its main pillars, as it will reportedly be designed to provide a single physical and digital network that integrates port, logistics, and rail delivery systems. 

“The agile and integrated physical and digital supply chain and logistics system will allow for real-time planning, resulting in secure on-time delivery, efficiency, and cost-effectiveness for industry partners,”
described Nadhmi Al-Nasr, CEO of NEOM.

A sustainable port 

Sustainability is one of the main, if not the main, characteristics behind NEOM’s project, and it will also be a priority for Oxagon. 

The idea is to power the region using 100 percent clean energy, with renewable solar, wind, and green hydrogen-based energy. 

“Oxagon will support organizations looking to run and manufacture sustainability, allowing them to make the biggest impact on the world and the smallest impact on the planet,”
states NEOM’s official website.

A research & innovation campus 

Another main aspect of Oxagon is its responsibility in helping our society in the journey to achieve a clean industry process. 

This is the main reason why, inside the hub, a sector will be dedicated to an innovation campus, where research dedicated to developing products and processes to help the transformation of a more sustainable industry will take place. 

“Oxagon will innovate to create a truly circular economy with a collaborative environment built around research and innovation. Oxagon’s innovation campus will host the Education, Research, and Innovation (ERI) ecosystem to rival established global centers,”
Al-Nasr wrote. 

The importance of Industry 4.0 in Oxagon 

The world has already experienced three industry revolutions. In the late 18th century, water and steam power started to be used in spite of humans and animals. Later, oil, gas, and electric power were the main resources in the manufacturing process. The third revolution had the introduction of machinery as its main trademark. 

Now, society is experiencing its fourth industrial revolution, also known as Industry 4.0, which even governments are having a hard time dealing with as smart machines and factories are helping companies produce more and more efficiently. 

Industry 4.0 will have a direct impact on Oxagon and will take a look at how it will be done, but first of all, how does it work ? 

What are the main characteristics of Industry 4.0 ? 

The increasing automation and the use of smart machines and factories can be a simple definition of the process involving Industry 4.0. 

It is also said that this manufacturing process plays a huge role in the efficiency of the production, as with that, manufacturers are likely to better meet customer demands via mass customization and connect the main information of the procedures into one operational data. 

What are the main technologies behind Industry 4.0? 

There are several features that englobe the environment of Industry 4.0, such as the Internet of Things (IoT), cloud computing, and cybersecurity

Out of the several technologies, AI is probably the most known in our society, and it has caused many discussions about the limits of its usage.

According to different experts on the subject, it can allow manufacturing companies to take advantage of the volume of information generated not only there but also at their business units and their partners. 

As it can bring so many advantages to one company and be a key factor in the information gathering process, AI, along with the other components, will be part of Oxagon, and here is how. 

How will Oxagon take advantage of Industry 4.0 ? 

One of the main priorities of Oxagon is to build an advanced ecosystem to help its partners develop an efficient and rapid manufacturing system, and Industry 4.0 will be one of the tools used by local companies to have a successful journey. 

According to al-Nasr, the IoT, human-machine fusion, artificial and predictive intelligence, and robotics are features that are part of the new industry revolution and will be used in Oxagon to provide top-of-mind production in the hub. 

“All of which are coupled to a network of fully automated distribution centers and autonomous last-mile delivery assets to drive NEOM’s ambitions of creating a seamless, integrated, intelligent, and efficient supply chain,”
Author / source

What is Oxagon’s impact on the country’s economy ?

Previously in our articles, we commented on how The Line and Trojena are likely to bring a lot of investments to Saudi Arabia through tourism. This time, Oxagon is also one of the projects inside NEOM, but in a different way. 

Reducing the country’s dependency on oil is one of the main goals of Saudi Arabia’s Vision 2030, and the investment of more than $2 billion in the development of a floating port city comes as a good alternative to achieving it. 

“Oxagon will be one of the world’s most technologically advanced logistics hubs with state-of-the-art integrated port and airport connectivity,”
al-Nasr declared.

Through its strategic location near the Suez Canal, thousands of ships are likely to pass through Oxagon, which is likely to force many shipping companies to establish headquarters in the area to better coordinate the traffic in the zone. 

Why are real estate businesses already making their first moves in Oxagon ? 

Almost two years after its announcement, Oxagon is already accelerating the country’s economy by attracting the investment of many international companies that want to be part of the project. 

Other than the Duba Port, the city will also be the home of many workers and visitors that will flock to the kingdom to witness the world’s largest floating structure in a green environment, and this is the reason why big players in the hospitality industry have already planted their seeds in the region.

The attractiveness of an offer of a sustainable environment at an economic hub 

With hundreds of millions directly impacted by daily pollution, the offer of a 100 percent renewable energy city can be a huge attraction for many trying to escape the problems of living in a harmful environment. 

For example, last week, thousands of Indians had to visit emergency rooms due to breathing problems caused by air pollution. According to local media reports, the air quality index (AQI) in Delhi surpassed 500. Anything above 150 is classified as unhealthy. 

The possibility of working at what is likely to be one of the most important economic hubs in terms of maritime trade in the world without having to face the drawbacks of polluted air is likely to be a key factor in attracting more visitors and residents to the area. 

“Oxagon complements the same philosophy and principles of THE LINE (which was announced in January 2021) and will offer exceptional livability in harmony with nature,” Al-Nasr affirmed. 

IHG Hotels & Resorts will have an Indigo property in Oxagon 

In August, the British hotel group IHG Hotels & Resorts sealed a deal with Oxagon’s team and will have a 250-key Hotel Indigo property in the area. 

“As our presence in the market continues to grow, we are committed to supporting the goals of Saudi Vision 2030 by offering exceptional hospitality experiences to leisure and business travelers visiting the country,”
wrote Haitham Mattar, IHG’s Managing Director of India, the Middle East, and Africa.

The hotel will reportedly be situated inside the residential part of the city and will include a spa, a wellness facility, and a 24-hour fitness center. It is expected to welcome guests in 2026. 

How is the project going ?

In the beginning of November, Oxagon reportedly reached an important goal by breaking ground on its research campus, which will have approximately 200,000 square meters. 

Additionally, the city has received its first major delivery of wind turbines, which will be used to develop the world’s largest green hydrogen plant. According to local media reports, at least 250 turbines will be installed to power the facility in Oxagon. 

It will reportedly integrate as much as 4 gigawatts of solar and wind energy to produce up to 600 tons of carbon-free hydrogen daily, which will save at least 5 million tons of CO2 every year. 

The city has already sealed deals with hotel groups, such as IHG Hotels & Resorts, and more investment in the housing sector is likely to arrive as the plan is to receive its first residents by 2024. 

The onshore part of the city is reportedly set to be completed by 2030.

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