Saudi Arabia’s NEOM has formed a new $10 billion logistics partnership with Denmark’s DSV company to invest in the transportation and logistics for NEOM’s $500 billion city with the aim of creating over 20,000 jobs.
This landmark partnership aims to revolutionize the logistics landscape by offering unparalleled ground, sea, and air logistics services to support NEOM’s ambitious development plans.
An Exclusive Partnership
NEOM and DSV have embarked on an exclusive $10 billion logistics joint venture to bolster the development of projects in NEOM, Saudi Arabia.
The joint venture is expected to provide comprehensive end-to-end supply chain management, facilitate the development and investment in transport and logistics assets and infrastructure, and oversee the transport and delivery of goods and materials within NEOM.
NEOM will retain a controlling stake in the joint venture, holding 51%, while DSV will own the remaining 49%. The unique shareholding structure ensures NEOM’s leading role in the venture while leveraging DSV’s global logistics and freight forwarding expertise.
Anticipated Demand and Impact
The joint venture foresees unprecedented demand for construction logistics up to 31 December 2031, followed by sustained growth in non-construction logistics. The venture is poised to significantly impact the Saudi economy through infrastructure development and creating over 20,000 employment opportunities.
“The economic benefit to this partnership will not only provide tens of thousands of jobs, but it will also enable growth to capture local and regional market share.” – Nadhmi Al-Nasr, CEO of NEOM
NEOM and DSV are committed to fostering innovation in the logistics sector. A fraction of the venture’s revenues will be allocated to research and development, promoting the commercialization of new, sustainable, next-generation logistics solutions.
Fostering Sustainable Development
The venture will establish a dedicated innovation center at NEOM’s Oxagon, a clean and advanced manufacturing hub.
This move underscores the partners’ commitment to pioneering sustainable logistics solutions and their dedication to Saudi Vision 2030, a strategic framework to reduce Saudi Arabia’s dependence on oil, diversify its economy, and develop public service sectors.
The Journey Ahead
Establishing this joint venture marks a significant milestone in NEOM’s journey toward realizing Vision 2030. It demonstrates NEOM’s commitment to revolutionizing Saudi Arabia’s logistics sector and fostering a future-forward, sustainable economy.
Redefining the Logistics Landscape
The joint venture between NEOM and DSV is set to redefine the logistics landscape in Saudi Arabia. By leveraging DSV’s global logistics expertise and NEOM’s visionary approach, the partnership aims to create a logistics hub capable of catering to the growing demands of a future-oriented city.
“NEOM is one of the world’s largest and most complex projects. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology, and digital transformation.” – Jens Bjørn Andersen, Group CEO, DSV
The joint venture is currently awaiting customary regulatory approvals, which are expected to be obtained in the second quarter of 2024.