NEOM and DSV have announced a US$10 billion exclusive logistics joint venture (JV) to support the development of the projects in NEOM, Saudi Arabia.
The new partnership will focus on providing logistics services for NEOM in the coming years.
Under the agreement, the JV will provide end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure, in addition to transport and delivery of goods and materials within NEOM.
NEOM will hold 51% of the joint venture while DSV will hold the remaining 49%.
NEOM shared that it “envisions unparalleled demand” for construction logistics through December 31, 2031, with sustained growth in non-construction logistics after that.
In addition to its impact on the logistics landscape, the venture is expected to boost the Saudi economy through infrastructure development and create more than 20,000 job opportunities.
Speaking about the deal, 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.”
Adding: “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, commented: “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 will allocate a portion of the JV’s revenues to developing “groundbreaking technologies” and commercialising new sustainable next-generation logistics solutions.
A dedicated innovation centre at NEOM will also be developed.
