NEOM, Saudi Arabia’s visionary city, has forged a momentous $10 billion logistics partnership with Denmark’s DSV, aimed at supercharging its supply chain operations in support of the city’s ambitious endeavors. This landmark collaboration not only focuses on delivering comprehensive logistics services for NEOM’s extensive giga-project but also holds the potential to be a catalyst for the Saudi economy, promoting infrastructure development and ushering in over 20,000 job opportunities. Under the terms of the agreement, NEOM will retain a 51 percent stake in the joint venture, with DSV holding the remaining 49 percent. CEO of NEOM, Nadhmi Al-Nasr, underscored the importance of this partnership, highlighting NEOM’s significant demand for logistics in both construction and non-construction aspects, positioning it as a global leader in this realm. The partnership with DSV, a well-regarded logistics company, is expected to harness expertise to foster innovation and sustainability throughout the logistics value chain, aligning with the forward-looking goals of Saudi Vision 2030. Demand for logistics in NEOM is anticipated to persist, particularly in construction logistics until December 31, 2031, followed by sustained growth in non-construction logistics.
Jens Bjørn Andersen, Group CEO of DSV, recognized NEOM as one of the world’s most extensive and intricate projects, presenting a unique opportunity for DSV to participate in an initiative at the forefront of innovation, technology, and digital transformation. Andersen also noted that DSV has already established a robust presence in Saudi Arabia, positioning the collaboration as a substantial growth opportunity for the company within the region. Both NEOM and DSV share a commitment to driving innovation, with a portion of the joint venture’s revenues allocated for pioneering technologies and sustainable logistics solutions. This vision extends to the establishment of an innovation center at NEOM, reinforcing the partnership’s dedication to pushing the boundaries of logistics and technology in a sustainable and forward-thinking manner.