Skip to content Skip to Search
Skip navigation

Neom and Denmark’s DSV in $10bn logistics partnership

By Matt Smith
The first residents of Oxagon, a Neom project, are due to move in next year Neom
The first residents of Oxagon, a Neom project, are due to move in next year
  • Joint venture to serve giga-project
  • PIF-owned Neom has 51% stake
  • DSV expands Saudi presence

Saudi Arabia’s Neom and Danish freight forwarder DSV have entered into a $10 billion logistics joint venture (JV) that will serve the $500 billion giga-project in the kingdom’s northwest.

The JV will provide supply chain management including delivering goods and materials to Neom, the companies said in a joint statement.

Neom, owned by Saudi Arabia’s Public Investment Fund, will hold a 51 percent stake in the JV and DSV the remainder.

Neom spans 26,500 square kilometres and will feature several major residential and tourism developments. These include The Line, a 170-km long linear city that will be 200 metres wide and 500 metres tall. Neom predicts The Line’s population will be 9 million by 2045.

PIF is investing $500 billion in Neom, according to its website. The first residents at another Neom project, Oxagon, will move in next year.

“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,” Neom CEO Nadhmi Al-Nasr said in a joint statement with DSV at the Future Investment Initiative (FII) in Riyadh.

“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.”

DSV is the world’s third-largest freight forwarder by annual logistics revenue, according to research company Armstrong & Associates, behind DHL and Switzerland’s Kuehne + Nagel.

“Neom is one of the largest and most complex projects in the world,” said Jens Bjørn Andersen, DSV’s group CEO, in the statement. “DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region.”

The JV’s launch is pending regulatory approval, which the companies expect to receive in the second quarter of 2024.

Latest articles

PIF's Starbucks shareholdings were cut almost by half from 6.3 million shares to 3.8 million

PIF slashes Starbucks stake as it cuts US stocks by $15bn

Saudi Arabia’s Public Investment Fund (PIF) has slashed its US equity holdings by 42 percent to $20.6 billion, including its stake in Starbucks, the global coffee chain that has suffered calls for a boycott as a result of the Gaza conflict. The latest US government data highlights funding challenges facing the Saudi giga-projects.  The filing […]

Tunisia olives

Soaring olive oil exports help Tunisia balance books

Tunisia’s soaring olive oil exports have almost doubled to close to $1 billion in just five months, helping it claw back its current account deficit.   However the increased revenues merely “paint over the cracks” and the country is still probably heading towards a sovereign default, according to an economic expert. Tunisia’s current account deficit narrowed […]

Iraqi prime minister Mohammed Shia Al-Sudani attends licensing rounds for 29 oil and gas exploration blocks at the oil ministry's headquarters in Baghdad

Falling oil prices deepen Iraq’s fiscal imbalances, says IMF

Iraq’s fiscal imbalances have worsened due to significant fiscal expansion and lower oil prices, according to the International Monetary Fund (IMF). “The ongoing fiscal expansion is expected to boost growth in 2024 at the expense of a further deterioration of fiscal and external accounts and Iraq’s vulnerability to oil price fluctuations,” the Washington-based fund said in […]

Saudi aluminium producer Talco is offering 12 million shares

Aluminium producer Talco announces Saudi IPO

Aluminium producer Al Taiseer Group Talco Industrial Company (Talco) is the latest entity to reveal initial public offering (IPO) plans in Saudi Arabia. The Riyadh-based company, which was set up in 2009, is offering 12 million shares, a 30 percent stake, on the Saudi Exchange (Tadawul) at a nominal value of SAR10 ($2.67) per share. […]