Saudi Arabia’s Neom, DSV form $10 billion JV for futuristic city

Riyadh: Saudi Arabia’s Neom is setting up a $10 billion venture with Danish freight forwarder DSV A/S to help develop Crown Prince Mohammed bin Salman’s flagship megaproject.

The partnership will focus on providing logistics services for Neom in the coming years, the companies said. Neom will hold 51 per cent of the JV, with DSV holding the rest.

Neom is the biggest project in the Crown Prince’s plan to diversify the country’s oil-dependent economy. He wants the city to transform Saudi Arabia’s economy and serve as a testbed for technologies that could revolutionize daily life.

The venture is expected to create more than 20,000 job opportunities, according to the statements, and the firms expect to obtain regulatory approvals in the second quarter of next year. DSV said the return on invested capital be in line with its existing targets.