A US$10 billion exclusive logistics joint venture between NEOM and DSV is announced in support of the development of the large-scale projects now under construction in NEOM, Saudi Arabia. In the upcoming years, the alliance will concentrate on offering logistics services to NEOM.
According to the agreement, the joint venture will manage the whole supply chain, develop and invest in assets and infrastructure related to transportation and logistics, and transport and deliver goods and materials within NEOM.
NEOM will hold 51% of the joint venture with DSV holding the remaining 49%.
Through December 31, 2031, NEOM anticipates record-breaking demand for construction logistics, followed by continued growth in non-construction logistics. Along with changing the logistics industry, the project is anticipated to grow Saudi Arabia’s economy by building infrastructure and opening up more than 20,000 new job opportunities.
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. The projected demand in both construction and non-construction logistics will make NEOM one of the largest customers in the world, and this partnership allows NEOM to create value from its demand. Working alongside one of the world’s leading logistics companies, the joint venture with DSV will build on expertise and know-how to drive innovation and sustainability throughout the logistics value chain. 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. It’s a living example of Saudi Vision 2030 in action, fostering job creation and building a future-leaning economy.”
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. DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region and we look forward to working with NEOM Company and bringing our logistics capabilities to the table.”
NEOM and DSV are committed to driving innovation and will allocate a portion of the JV’s revenues to foster the development of groundbreaking technologies and commercialize new sustainable next-generation logistics solutions. The vision extends further by establishing a dedicated innovation center at NEOM.
The new joint venture is a significant milestone demonstrating NEOM’s commitment to revolutionizing Saudi Arabia’s logistics sector, and paves the way for pioneering sustainable logistics solutions, marking a new chapter in its journey towards realizing Vision 2030