Neom and Denmark-based DSV have announced a $10bn logistics joint venture to support the development of the projects taking shape within the $500bn gigaproject in the northwest of Saudi Arabia.

The partnership will focus on providing logistics services for Neom. These include end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure, as well as the transport and delivery of goods and materials within Neom.

A statement from DSV says: “Neom envisions unparalleled demand for construction logistics through to 31 December 2031, with sustained growth in non-construction logistics thereafter. In addition to its impact on the logistics landscape, the venture is expected to boost the Saudi economy through infrastructure development and creating more than 20,000 job opportunities.”

Neom will hold a 51 per cent stake in the joint venture with DSV holding the remaining 49 per cent. Completion of the partnership is awaiting regulatory approvals, which are expected to be obtained in the second quarter of 2024.