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The latest phase at Neom’s Oxagon seaport project has been launched, marking significant progress on what is set to become one of the world’s most advanced terminals and largest floating structures.
Newsweek 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. However, its ambitious goals are being reassessed due to financial pressures and potential delays. The kingdom is experiencing declining oil prices, with crude falling below $70 per barrel, leading it to seek economic diversification through initiatives in non-oil sectors like tourism, technology, and infrastructure development.
### What To Know
Belgian company DEME announced further progress on dry earth-moving work for phase two of Oxagon in late August. The second phase was initially scheduled to begin in December 2023, but is now set to start later this year. Neom’s new port city, formerly known as Duba port, is strategically located along one of the world’s busiest maritime trade routes connecting Asia, Africa, and Europe. Plans for Oxagon include renewable energy-powered, high-tech, fully automated logistics and industrial hubs with AI-driven operations.
In July, Oxagon conducted its first trial shipment from Egypt to Iraq via the port of Neom, aiming to reduce transit times and logistics costs.
### What People Are Saying
DEME stated in a press release on August 26: “We have made further progress on the dry earth-moving activities for phase two of Oxagon in Saudi Arabia. Cutter suction dredging will commence later this year.”
Melissa Blake, Neom’s port director, told World Cargo News in an August 21 report: “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. The 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
Despite headwinds, Saudi Arabia is pushing forward with its Neom project plans, aiming to complete most of the sprawling city by 2030.
