NEOM has entered a $10 billion logistics joint venture with Denmarks DSV to support supply chain operations

NEOM, the future metropolis of Saudi Arabia, and DSV of Denmark have formed a $10 billion logistics joint venture to assist supply chain activities. In the upcoming years, the partnership's main goal will be to supply logistical services for the giga-project.  Additionally, this project is expected to strengthen infrastructure development, stimulate the Saudi economy, and provide approximately 20,000 new employment opportunities. 

In accordance with the agreement, the partnership will also manage the supply and transportation of materials and commodities inside the $500 billion metropolis, as well as invest in logistics and transport assets and infrastructure. According to a business release, DSV will own the remaining 49% of the joint venture, while NEOM will keep 51% of it. 

He stressed that the city is equipped to take advantage of NEOM's predicted demand in both construction and non-construction logistics, positioning it as one of the major clients globally. Al-Nasr emphasised that this joint venture would draw on experience to foster innovation and sustainability throughout the logistics value chain by partnering with DSV, a well-known logistics firm.  

In keeping with Saudi Vision 2030, he also emphasised the economic advantages, such as the creation of jobs and the promotion of an economy that is forward-looking. Up to December 31, 2031, NEOM expects a strong demand for construction logistics. After that, non-construction logistics is expected to develop steadily. He revealed that DSV already has a significant presence in Saudi Arabia and said that the partnership offers his business a significant chance to expand in the country. 

A percentage of the joint venture's profits will go towards developing cutting-edge technology and environmentally friendly logistics solutions, since NEOM and DSV are dedicated to promoting innovation. The construction of an innovation centre at NEOM is part of this aim.