RIYADH: Saudi Arabia’s future city NEOM has entered into a $10 billion logistics joint venture with Denmark’s DSV to support supply chain operations.
The partnership will primarily focus on providing logistics services for the giga-project in the coming years.
This venture is also poised to boost the Saudi economy, enhance infrastructure development, and create over 20,000 job opportunities.
Under the deal, the partnership will also invest in transport and logistics assets and infrastructure, and handle the transportation and delivery of goods and materials within the $500 billion city.
NEOM will retain 51 percent of the joint venture, with DSV holding the remaining 49 percent, according to a company statement.
Nadhmi Al-Nasr, CEO of NEOM, said: “This partnership not only shows the reality of NEOM and its vision, but also the private sector’s level of confidence to join us on this journey.”
He emphasized that NEOM’s projected demand in both construction and non-construction logistics positions it as one of the world’s largest customers, and this partnership enables the city to leverage that demand.
Al-Nasr underscored that this joint venture with DSV, a prominent logistics company, will build on expertise to drive innovation and sustainability throughout the logistics value chain.
He further highlighted the economic benefits, including job creation and fostering a forward-leaning economy in line with Saudi Vision 2030.
NEOM envisions robust demand for construction logistics until Dec. 31, 2031, followed by sustained growth in non-construction logistics.
Jens Bjørn Andersen, group CEO, DSV, said: “NEOM is one of the largest and most complex projects in the world. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology and digital transformation.”
He disclosed that DSV has already established a strong presence in Saudi Arabia, adding that the collaboration represents a substantial growth opportunity for his company in the region.
Both NEOM and DSV are committed to driving innovation, with a portion of the joint venture’s revenues earmarked for pioneering technologies and sustainable logistics solutions. This vision extends to the establishment of an innovation center at NEOM.
