Saudi Arabia’s $500 billion flagship project NEOM on Tuesday set up a $10 billion joint venture (JV) with Denmark’s DSV (DSV.CO), the world’s third-largest freight forwarder, they said in a joint statement.
Saudi Arabia’s Crown Prince Mohammed bin Salman announced plans for NEOM – meant to eventually house 9 million people – in 2017 as part of his Vision 2030 reform plan, which aims to diversify the economy away from oil.
“The partnership will focus on providing logistics services for NEOM in the coming years,” the statement said, adding NEOM will hold 51% of the joint venture and DSV 49%.
“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.
The JV is expected to create more than 20,000 work opportunities, they added.
The kingdom’s sovereign wealth fund, the Public Investment Fund, is the cornerstone investor in NEOM, a 26,500-square-km (10,230-square-mile) high-tech development on the Red Sea.
Source: Reuters
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