OXAGON, Historic Shift, in the Pipeline

OXAGON is to focus on 7 main sectors, that would make a historic shift for the Saudi industrial sector, in which the Kingdom’s Vision 2030 aims through, to reduce dependence on oil, by raising the non-oil sectors’ contribution to the economy, the official announcement of the establishment of the industrial city revealed.

OXAGON’s plans focus on sustainable energy, autonomous mobility, innovation of water solutions, sustainable food production, health and well-being, technology and digital manufacturing (including communications, space technology and robotics), and modern construction methods, all powered by 100% renewable energy sources.

 OXAGON to focus on innovation and working with new technologies, that create a vital base for these seven industries, as the city constitutes a starting point for economic development across all sectors, in the surrounding and nearby regions, as well as all regions of the Kingdom, whether for raw materials, manpower or logistics.

Expectations indicate that the new industrial city will make a significant quantum leap, in the contribution to the Saudi industrial sector, as the latest data reported by the Business Sector Support Observatory of the Chamber of Commerce, in Riyadh, shows that the Saudi industrial sector contributes about a third of the Kingdom’s gross domestic product, with a value of about SR871 million, equivalent to 33% of the gross domestic product for the Year 2020, and therefore the establishment of OXAGON with its 7 industrial sectors, would make a new quantum leap, in the structure of the sectors’ contribution to the Saudi economy.

Riyadh region accounts for 39% of the number of factories, in the Kingdom, by the end of 2020, or as much as 6,756 productive factories, and it also acquires about 39% of the workforce, in the factories, followed by the eastern region, which comes first in terms of capital, invested in those factories, at 45%.

The Crown Prince’s announcement of the establishment of OXAGON Industrial City would make the northwestern region of the Kingdom, one of the largest industrial communities along with Riyadh Region and Eastern region, reflecting the future and geographical vision for the concentration of the industrial sector, in all regions of the Kingdom.

On the other hand, General Authority for Statistics’ data indicate that only 10.3% of Saudis working, in the private sector’s manufacturing domain, with a total number of 213.7 thousand Saudis by the end of the second quarter of 2021. Therefore, it is expected that the new smart industrial sector in OXAGON will contribute to doubling the number of Saudis, working in the sector, creating a new generation of Saudi industrialists, qualified to work with the latest industrial technology.

The industrial city relies on the most advanced technologies such as: Internet of Things (IoT), human-machine interaction, artificial intelligence, predictability, and robotics, all coupled with a network of fully automated and independent distribution centers, serving NEOM’s ambitions to create an integrated and intelligent and effective supply chain. It also relies 100% on renewable and carbon-free energy sources.