NEOM and DSV have joined forces in a $10 billion logistics venture to support NEOM’s ambitious projects in Saudi Arabia. This exclusive partnership is set to deliver logistics services for NEOM’s ventures in the coming years.
Under this arrangement, the joint venture will handle end-to-end supply chain management, investments in transport and logistics assets, infrastructure development, and the transportation of goods within NEOM.
NEOM will maintain a majority stake of 51%, while DSV will hold the remaining 49%.
NEOM anticipates significant demand for construction logistics until December 31, 2031, with continuous growth in non-construction logistics thereafter. This collaboration is expected to stimulate Saudi Arabia’s economy by spurring infrastructure development and generating over 20,000 job opportunities.
Nadhmi Al-Nasr, CEO of NEOM, emphasized the partnership’s importance: “The projected demand in both construction and non-construction logistics will make NEOM one of the largest customers in the world. This partnership allows NEOM to create value from its demand. Working with a global logistics leader like DSV, this venture will drive innovation and sustainability throughout the logistics chain. The economic benefits will not only provide jobs but also foster local and regional market growth.”
Jens Bjørn Andersen, Group CEO of DSV, expressed his enthusiasm: “NEOM is one of the world’s largest and most complex projects. This partnership is a significant growth opportunity for DSV in the region and allows us to bring our logistics capabilities to support NEOM’s innovative and tech-forward development.”
NEOM and DSV are committed to driving innovation and will allocate a portion of the venture’s revenues to develop groundbreaking technologies and sustainable logistics solutions. Additionally, they plan to establish an innovation center at NEOM’s advanced manufacturing hub, Oxagon.
The partnership’s completion is pending customary regulatory approvals, expected in the second quarter of 2024.
The business plan for the joint venture necessitates a $10 billion gross investment. According to the plan, the total shareholder funding commitment until December 31, 2031, amounts to $5 billion. NEOM and DSV will contribute funding in proportion to their respective ownership stakes.
