Neom, the visionary mega-city project in Saudi Arabia, has partnered with DSV for an exclusive $10 billion logistics joint venture.
Neom is a new urban area planned by Saudi Arabia in the northwestern Tabuk province. The project includes various zones like a floating industrial complex, a global trade hub, tourist resorts, and a green city powered by renewable energy.
According to a statement, Neom will feature various logistics services. These logistics services will encompass ground, sea, and air transportation.
Neom – A futuristic city
The joint venture’s primary focus is meeting Neom’s intricate logistics requirements, which are vital to the city’s rapid development.
Anticipating unprecedented demand, the partnership will support the logistics industry. It is poised to significantly contribute to the Saudi economy. It will reportedly generate more than 20,000 job opportunities and foster economic growth.
Under the agreement, DSV will oversee end-to-end supply chain management, investing in and developing transport and logistics assets and infrastructure. Neom will hold the majority share, with a 51% stake, while DSV will have the remaining 49%.
The collaboration doesn’t stop at traditional logistics; both businesses are dedicated to innovation, committing a portion of the venture’s revenues to drive the development and commercialization of sustainable next-generation logistics solutions.
For example, the city is establishing an innovation center at Oxagon, an advanced manufacturing hub dedicated to pioneering technologies.
Next-gen solutions
Nadhmi Al-Nasr, CEO of Neom, expresses this venture’s impact. “It’s a living example of Saudi Vision 2030 in action, fostering job creation and building a future-leaning economy,” he says.
“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. The economic benefit to this partnership will not only provide tens of thousands of jobs, but it will also enable growth to capture local and regional market share,” he concludes.
Jens Andersen, the group CEO of DSV, believes the project is significant and calls Neom “one of the largest and most complex projects in the world. 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.”
This strategic partnership is a testament to Neom’s commitment to revolutionizing Saudi Arabia’s logistics sector. While the completion of the partnership awaits regulatory approvals expected in the second quarter of 2024, it signifies a pivotal moment in the city’s journey toward realizing its ambitious vision.
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Marce has contributed tech to various prominent publications since 2018, offering a transparent perspective into the tech industry and its effects on its users. She now spends her time developing insightful content for industry players. You know, when she's not gaming or geeking out about the latest fad.
