NEOM, a futuristic city under construction in Saudi Arabia, and DSV, a global logistics company, have announced a $10 billion joint venture to provide logistics services for NEOM. The joint venture will focus on end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure, and transport and delivery of goods and materials within NEOM.
NEOM is one of the most ambitious construction projects in the world, and it is expected to create unprecedented demand for logistics services. The joint venture between NEOM and DSV is well-positioned to meet this demand, given DSV's world-class logistics expertise and capabilities.
The joint venture is also expected to have a positive impact on the Saudi economy by creating jobs and boosting growth. NEOM has estimated that the joint venture will create more than 20,000 job opportunities.
In addition to its economic impact, the joint venture is also committed to driving innovation in the logistics sector. NEOM and DSV have allocated a portion of the JV's revenues to foster the development of ground-breaking technologies and commercialise new sustainable next-generation logistics solutions.
The joint venture is a significant milestone for NEOM and demonstrates its commitment to revolutionising Saudi Arabia's logistics sector. It is also a testament to the confidence that DSV has in NEOM's potential and the Saudi economy.
Nadhmi Al-Nasr, CEO of NEOM: "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."
Jens Bjørn Andersen, Group CEO, DSV: "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."
The joint venture between NEOM and DSV is a significant development for the Saudi logistics sector. It is likely to have a positive impact on the Saudi economy by creating jobs and boosting growth. The joint venture is also committed to driving innovation in the logistics sector, which could lead to the development of new sustainable logistics solutions.Return to Articles