Saudi Arabia’s NEOM, a city of the future, has partnered with Denmark’s DSV in a $10 billion logistics venture. The main goal is to handle logistics for the massive project in the years ahead. This collaboration is expected to boost Saudi Arabia’s economy, improve infrastructure, and create over 20,000 jobs.
As part of the deal, the partnership will invest in transportation and logistics assets and infrastructure, managing the movement of goods and materials within the $500 billion city. NEOM will own 51 percent of the joint venture, while DSV will have the remaining 49 percent.
Nadhmi Al-Nasr, NEOM’s CEO, sees this partnership as a strong indicator of NEOM’s potential and the private sector’s confidence in joining this endeavor. He emphasized that NEOM’s demand for logistics, both in construction and other sectors, positions it as one of the world’s largest customers, and this partnership will help meet that demand.
Al-Nasr highlighted the economic benefits, including job creation and fostering an innovative and forward-looking economy in alignment with Saudi Vision 2030. NEOM expects substantial demand for construction logistics until December 31, 2031, followed by ongoing growth in non-construction logistics.
Jens Bjørn Andersen, DSV’s Group CEO, noted that NEOM is one of the world’s largest and most complex projects, offering DSV a unique opportunity to support a project leading in innovation, technology, and digital transformation. He mentioned that DSV already has a strong presence in Saudi Arabia, and this collaboration represents a significant growth opportunity for the company in the region.
Both NEOM and DSV are committed to driving innovation, with a portion of the joint venture’s revenues dedicated to pioneering technologies and sustainable logistics solutions. They plan to establish an innovation center at NEOM to further this vision.
