NEOM partners with DSV in a $10 billion logistics venture
Providing a broad range of ground, marine, and air logistics services is a multibillion-dollar industry leader in logistics.
With exceptional demand growing the joint venture and enhancing the local economy through services and jobs, the partnership will concentrate on the logistical services required for NEOM.
The JV will accelerate the commercialization of new products and technologies while utilizing current R&D initiatives.
NEOM, Kingdom of Saudi Arabia, October 24 2023 – Neom, the transformative city being developed in Saudi Arabia, has entered into a momentous US$10 billion exclusive logistics joint venture with DSV. This partnership aims to support the extensive projects underway in NEOM and is poised to redefine the logistics landscape in the region.
The core focus of this strategic alliance is to provide comprehensive logistics services to meet the burgeoning demands of NEOM in the upcoming years. This encompasses a wide spectrum of logistical operations, including end-to-end supply chain management, investments in transport and logistics assets and infrastructure, as well as the transport and delivery of goods and materials within the vast expanse of NEOM.
The partnership structure allocates 51% of the joint venture to NEOM, while DSV secures the remaining 49%, demonstrating a strong commitment from both parties to fuel the growth of this ambitious undertaking.
NEOM, in its vision, foresees an unprecedented requirement for construction logistics up to December 31, 2031, followed by sustained growth in non-construction logistics. Beyond the logistical aspects, this venture is set to become a catalyst for boosting the Saudi economy by spurring infrastructure development and creating more than 20,000 employment opportunities.
Nadhmi Al-Nasr, CEO of NEOM, emphasized the significance of this partnership, stating, "This partnership not only demonstrates the reality of NEOM and its visionary journey but also underscores the private sector's unwavering confidence in joining us on this transformative path. With anticipated demand in both construction and non-construction logistics, NEOM is positioned to become one of the world's largest customers, and this partnership empowers NEOM to harness value from this demand. Collaborating with a global logistics leader like DSV, this joint venture will leverage expertise and innovation to drive sustainability throughout the logistics value chain. The economic benefits of this collaboration will extend beyond job creation to capturing local and regional market share, exemplifying the tangible progress of Saudi Vision 2030, fostering job creation, and nurturing a forward-looking economy."
Jens Bjørn Andersen, Group CEO of DSV, underscored the significance of NEOM in the global context, stating, "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 represents a significant growth opportunity for us in the region. We eagerly anticipate collaborating with NEOM Company and leveraging our robust logistics capabilities in this transformative endeavor."
Both NEOM and DSV are firmly committed to fostering innovation. A portion of the joint venture's revenues will be channeled towards the development of cutting-edge technologies and the commercialization of sustainable, next-generation logistics solutions. In a visionary move, an innovation center dedicated to this purpose will be established within NEOM.
This groundbreaking joint venture represents a significant milestone in NEOM's quest to revolutionize the logistics sector in Saudi Arabia. Moreover, it signals the initiation of pioneering sustainable logistics solutions, marking a new chapter in the city's relentless journey towards realizing Vision 2030.