Executive Brief — NEOM — Carbotura KSA

Sharia-Structured Instrument Ijarah (manufacturing and processing service) + Musharakah (revenue participation in manufactured goods). NEOM Company is both the CSA counterparty and the Manufacturing Site Deed counterparty — unique single-entity bilateral structure in the programme. Formal Sharia Board review recommended prior to CSA execution.

NEOM Company signs the CSA, allocates the site, and — through OXAGON — buys the output. No arm's-length negotiation. One principal. One action.

Opening

NEOM's construction-dominated waste profile — C&D fluff 220 TPD at full programme, the highest in the KSA programme — produces a feedstock mix that ACM converts into the advanced manufactured materials OXAGON's industrial tenants require: Carbon Fiber Precursor, Graphene Oxide, Pozzolanic SCM, and Mineral Aggregate. Construction generates the waste; ACM manufactures the output; OXAGON procures it. The circular loop closes entirely within NEOM Company's own programme. Three modules. $165M Carbotura FDI. Zero capital from NEOM Company.

NEOM's structure is unique in the KSA programme. In every other region, the site authority (MODON or RCJY) is separate from the CSA counterparty (SIRC), and buyers are independent institutions. At NEOM, NEOM Company (PIF Direct) is all three. The off-take confirmation is an internal NEOM procurement decision.

Gap 1

NEOM Construction Waste

NEOM's giga-project construction generates C&D and construction waste at a scale and pace that has no equivalent in Saudi Arabia. No advanced processor exists within NEOM's territory. State A = landfill with no manufacturing output and no sustainability documentation.

220 TPD C&D fluff at full programme — highest in programme

Gap 2

OXAGON Supply Chain Gaps

OXAGON's advanced manufacturing tenants require Carbon Fiber Precursor, Graphene Oxide, and HP Graphite — all currently import-dependent. Saudi Arabia has zero domestic production of CFP or GO. ACM from NEOM's own waste stream fills all three procurement gaps.

0 domestic CFP · 0 domestic GO · China 60–95% supply dominance

Carbotura Phase Initial (100 TPD, Q2 2031 COD) converts NEOM's own construction waste into OXAGON's manufacturing inputs. $165M Carbotura FDI. Zero NEOM capital.

The Decision

THIS BRIEF MODELS OPTION A — STANDARD ELECTION

Option A-IC (OXAGON in-country premium on CFP, GO, Pozzolanic SCM — +15–22%) described in Proposal and ICO Study. NEOM's in-country premium is an internal NEOM procurement valuation, not an external commercial negotiation.

The CSA and Manufacturing Site Deed are both with NEOM Company (PIF Direct). This is a single bilateral agreement with a single sovereign entity. No SIRC. No MODON. No RCJY.

Processing Service (Ijarah): NEOM Company pays for a manufacturing and processing service per ton processed — Year 1
Manufactured Goods Revenue Share (Musharakah): NEOM Company receives a share of manufactured output revenue, 13 months after each corresponding Processing Service payment — from Month 14 onward
Zero capital obligation: Carbotura designs, finances, builds, owns, and operates. LOCKED.

Key Facts

Addressable streams	C&D fluff · ASR · Commercial · MSW residuals · Wastewater sludge	LOCKED
C&D fluff (dominant stream)	220 TPD at full programme — highest in KSA programme	ESTIMATED
Phase Initial	100 TPD · 35,000 tpy · 1 module	LOCKED
Full programme	300 TPD · 105,000 tpy · 3 modules	LOCKED
Carbotura FDI (Phase Initial)	$55M USD (SAR 206.25M)	LOCKED
Carbotura FDI (full programme)	$165M USD (SAR 618.75M)	LOCKED
FWDC	SAR 320/ton ESTIMATED — highest in KSA programme (remote, no incumbent)	ESTIMATED ⚠ WARN-01
Revenue Share lag	13 months rolling · independent transaction	ALWAYS
Capital obligation	Zero	LOCKED
T0	Q4 2028	ESTIMATED
Phase Initial COD	Q2 2031	ESTIMATED
First Revenue Share	~Q3 2032	DERIVED
Direct FTE (full programme)	141 · Subject to Nitaqat compliance	ESTIMATED
Carbon avoidance (full programme)	399,675 tCO₂e/yr	ESTIMATED
MWAN contribution (full programme)	105,000 tpy toward 2035	ESTIMATED
Primary ICO buyer	OXAGON (NEOM Company) — CFP · GO · Pozzolanic SCM · HP Graphite	CANDIDATE
CSA counterparty	NEOM Company (PIF Direct)	LOCKED
Site counterparty	NEOM Company (PIF Direct) — same entity	LOCKED

Cost of Delay

Each 12-Month T0 Slip

NEOM's construction waste — at SAR 320/ton FWDC, the highest in the programme — continues to accumulate as a disposal liability with no manufacturing output
OXAGON supply chain gaps for CFP, GO, and HP Graphite remain import-dependent for another year
Construction sustainability credentials for THE LINE, SINDALAH, and OXAGON are not supported by documented circular waste disposition
Forfeits one full year of Revenue Share at 3-module programme scale

Call to Action

Authorise the Authority Feasibility Study — the single action that preserves Q4 2028 T0.

The Feasibility Study resolves:

NEOM Company actual gate rates and waste stream volumes (WARN-01)
ACM site allocation within NEOM's Phase II land — 15,000–25,000 m² per 100 TPD module
NCEC manufacturing facility classification for NEOM zone
Nitaqat tier with HRSD (WARN-03) — NEOM's workforce structure is unique nationally
OXAGON preferred supplier agreement engagement — CFP, GO, HP Graphite specification review (first ICO track; internal NEOM process)
NEOM construction materials procurement — Pozzolanic SCM and Aggregate framework

Authorization required by Q3 2028 to preserve Q4 2028 T0.

Contact: info[at]carbotura.com

Sources & Legal

Registry: registry-neom-v1. All figures ESTIMATED unless LOCKED. IFRS basis. SAR/USD 3.75 (pegged, VERIFIED).

Not a Sharia certification or sukuk prospectus. Not a prospectus under the Capital Markets Law of Saudi Arabia. For decision-authority use only.