NEOM and DSV Forge USD 10 Billion Logistics Joint Venture
NEOM, Saudi Arabia’s ambitious development project, is set to embark on a transformative journey in the logistics sector with a groundbreaking USD 10 billion logistics joint venture alongside DSV-Global Transport and Logistics, with GLA & Co acting as its Saudi and GCC counsel.
The partnership between NEOM and DSV, announced as an exclusive venture, will inject fresh dynamism into Saudi Arabia’s logistics arena and represent a significant stride towards the country’s Vision 2030. This milestone underscores NEOM’s unwavering commitment to redefining the logistics landscape with an emphasis on sustainable solutions.
With the completion of the partnership awaiting customary regulatory approvals, anticipated in the second quarter of 2024, the joint venture promises to leave an indelible mark on the Saudi Arabian economy.
In this visionary collaboration, NEOM Company, the master developer of NEOM, contributes as a majority shareholder, holding 51% of the venture, while DSV stands as a 49% shareholder. Their combined commitment totals an impressive USD 10 billion, equally split between the parties, up until December 31, 2031.
The joint venture is poised to offer a comprehensive array of logistics services, encompassing ground, sea, and air, which are vital for the realization of ambitious projects within the NEOM region. As a leading-edge living laboratory for the future, NEOM’s location on the Red Sea promises to stimulate economic growth and infrastructure development in Saudi Arabia. The project is expected to generate more than 20,000 job opportunities, contributing to the country’s sustainable growth.
NEOM Company, the visionary master developer of the NEOM territory, is strategically positioned in the northwest of Saudi Arabia along the Red Sea coast. Its mission is to construct a living laboratory that envisions the future, showcasing the limitless possibilities of human potential and technological innovation.
On the other hand, DSV-Global Transport and Logistics is a global leader in the field of transport and logistics services. With a dedicated workforce of over 75,000 employees in more than 80 countries, the company passionately delivers exceptional customer experiences and high-quality services. This strategic partnership will allow both entities to harness their expertise and resources in shaping the future of logistics within the NEOM region.
The NEOM-DSV joint venture holds the potential to redefine the logistics sector, empowering NEOM to accelerate its ambitious projects, foster economic growth, and set the course for sustainable logistics solutions. This transformative collaboration marks a significant milestone in NEOM’s ongoing journey towards realizing its ambitious Vision 2030 and reaffirms Saudi Arabia’s commitment to fostering innovation and progress on a global scale.
Fawaz Aldubaikhi, Saudi Partner at GLA & Co, remarked on the deal, “we are proud to have been part of this transformative venture that will leave a lasting impact on the logistics industry and the Saudi economy. Our dedicated team worked tirelessly to ensure the success of this deal, and we are excited to see the positive changes it will bring to NEOM and the region.”
Alex Saleh, Managing Partner, stated, “for us this deal was important in two ways. First, it was wonderful to re-unite with Moalem Weitemeyer and Freshfields again as we worked with amazing team members from these top law firms on the DSV $ 4 Billion acquisition of Agility a couple of years ago. Second, this deal highlights the strength of our Saudi practice, which is quickly becoming a leading local law firm in Riyadh.”
The completion of this historic joint venture is contingent on customary regulatory approvals, which are anticipated to be secured in Q2 of 2024.
The GLA & Co team was led by both Alex Saleh (pictured left) and Ahmad Saleh (pictured right), along with the valuable contributions of Fawaz Aldubaikhi, Maha El Miehy, Asad Ahmad, Shahad Al Humaidani, and Hussein Ali Bu Najimah.
