Saudi Arabia’s NEOM, a $500B flagship project, established a $10B joint venture (JV) with Denmark’s DSV, the world’s third-largest freight forwarder, as announced in their joint statement.
NEOM aims for a logistics hub
NEOM’s objective is to become a key logistics hub. Saudi Arabia’s Crown Prince Mohammed bin Salman unveiled the NEOM project in 2017, with the vision of eventually accommodating 9 million residents.
This initiative is part of his Vision 2030 reform plan, which seeks to reduce the country’s economic dependence on oil, according to Gulf Business.
“The partnership will focus on providing logistics services for NEOM in the coming years,” the statement said, adding NEOM will hold 51 percent of the joint venture and DSV 49 per cent.
“The joint venture will provide end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure as well as transport and delivery of goods and materials within NEOM,” the companies said.
They anticipated that the joint venture would generate over 20,000 job opportunities.
The Public Investment Fund, the sovereign wealth fund of the kingdom, serves as the principal investor in NEOM, a 26,500-square-kilometer (10,230-square-mile) advanced development located along the Red Sea.
