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By Amira El-Fekki
Middle East News Reporter
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The start of a new phase at Neom's Oxagon seaport project has been announced, highlighting rapid progress at what is set to become one of the world's most advanced terminals and largest floating structures.
Newsweek has reached out to Saudi Arabia's Neom project for comment.
Why It Matters
Saudi Arabia's flagship project Neom continues to attract global attention and investment, even as its ambitious goals are being reassessed due to financial pressures and potential delays.
Read More on World
The kingdom is experiencing a decline in oil prices, which have fallen below $70 per barrel, and is seeking to diversify its economy through initiatives in non-oil sectors, including tourism, technology, and infrastructure development.
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What To Know
Belgian company DEME said in late August that it had made further progress on dry earth-moving work in Saudi Arabia for phase two of Oxagon preparing the site for cutter suction dredging set to begin later this year.
The company previously said the second phase of transformation work for the port of Neom would begin in December 2023, back when it was awarded the contract.
The new port city, formerly known as Duba port, has a strategic location in one of the world's busiest maritime trade routes connecting Asia, Africa, and Europe. Saudi Arabia's plans frame Oxagon as a renewable energy-powered, high-tech, fully automated logistics and industrial hub, featuring AI-driven port operations.
Oxagon conducted its first trial shipment in July from Egypt to Iraq via the port of Neom, which seeks to reduce transit times and logistics costs.
Neom's signature known as The Line—a planned 170-kilometer linear city—has faced significant delays and budget overruns, with reports highlighting unrealistic timelines and overly ambitious plans forcing authorities to scale down project.
Trojena, a desert ski resort in the mountains, is also under construction. However, the tourism project may not be ready on time to host the 2029 Asian Winter Games secured by Saudi Arabia, increasing chances of its relocation to another host country.
What People Are Saying
DEME said in press release on August 26: "[We have made] further progress on the dry earth moving activities in Saudi Arabia for the Oxagon phase 2 in preparation for cutter suction dredging work to start later this year."
Melissa Blake, port director at Neom, told World Cargo News in a report published on August 21: "The port's automation strategy spans every layer of operations—from electric equipment and AI-powered energy systems to digital twin platforms, predictive maintenance, and autonomous handling solutions. […] Port of NEOM is setting a new global standard for safe, intelligent, and resilient terminal operations, ensuring that as automation advances, the workforce evolves alongside it."
What Happens Next
Saudi Arabia is forging ahead with its wider Neom project despite headwinds. Riyadh hopes to complete most of the sprawling city by 2030.
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