NEOM and DSV establish USD 10 billion logistics joint venture

NEOM and DSV announce a USD 10 billion exclusive logistics joint venture to support the development of the ambitious projects taking shape in NEOM, Saudi Arabia. The partnership will focus on providing logistics services for NEOM in the coming years, according to release.
 
Under the agreement, 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.
 
NEOM will hold 51% of the joint venture with DSV holding the remaining 49%.
 
Completion of the partnership is awaiting customary regulatory approvals, which are expected to be obtained in the second quarter of 2024.
 
The business plan for the joint venture is expected to require a USD 10 billion gross investment. In accordance with the business plan, the total shareholder funding commitment up and until 31 December 2031 is USD 5 billion. NEOM and DSV commits to provide funding to realise the business plan pro rata to their respective shareholdings.
 
It is expected that the return on invested capital be in line with DSV's existing target.
 
It is not expected that the joint venture will have any material financial impact on DSV for the financial year 2023.