Saudi Arabia advances phase 2 of Neom’s Oxagon port

Saudi Arabia is pressing ahead with Phase 2 of Oxagon, the futuristic port and industrial hub forming a core part of the $500 billion Neom mega-project. Fresh site works are now under way on the Red Sea coast, with contractors preparing the ground for large-scale dredging scheduled later this year.

Oxagon, designed in a distinctive octagonal shape and partly extending offshore, is billed as “the world’s largest floating structure.” Positioned south of Neom’s high-profile but controversial linear city, The Line, the port is intended to serve as the industrial and logistics backbone that underpins Neom’s commercial sustainability.

A leading European dredging contractor, listed on the Euronext stock exchange, cited Oxagon among its flagship projects for 2025 in its latest quarterly update. While The Line has attracted global scrutiny over its scale and feasibility, Oxagon is central to Crown Prince Mohammed bin Salman’s Vision 2030 plan to diversify the Saudi economy. “Oxagon will be the catalyst for economic growth and diversity in Neom and the kingdom, further meeting our ambitions under Vision 2030,” the Crown Prince said at the project’s launch in 2021. He added that the port city would “contribute to Saudi Arabia’s regional trade and commerce, and support creating a new focal point for global trade flows.”

Envisioned as one of the world’s most advanced logistics hubs, Oxagon will integrate port, rail, and air connectivity. Its strategic location on the Red Sea, through which around 13% of global trade passes, positions it to emerge as a new center for global shipping and industry.