GLA & Co is pleased to announce it has acted as Saudi and GCC counsel to DSV-Global Transport and Logistics regarding the establishment of a groundbreaking USD 10 billion exclusive transport and logistics joint venture between it and NEOM Company. This strategic partnership is set to reshape the logistics landscape and significantly boost the Saudi Arabian economy.

NEOM Company, the visionary master developer of NEOM, a region in northwest Saudi Arabia, and DSV, a global leader in transport and logistics services, have formed this landmark joint venture, with NEOM Company as a 51% shareholder and DSV as a 49% shareholder. The joint venture represents a gross investment of USD 10 billion, with both parties committing a total of USD 5 billion pro rata to their respective shareholdings up to December 31, 2031.

This joint venture is poised to provide an extensive array of ground, sea, and air logistics services, crucial for the development of ambitious projects within the NEOM territory. NEOM, envisioned as a living laboratory for the future, is located on the Red Sea and is expected to create more than 20,000 job opportunities, contributing to economic growth and infrastructure development in Saudi Arabia.

NEOM Company is the master developer of the assets in the NEOM territory, a region in northwest Saudi Arabia on the Red Sea being built from the ground as a living laboratory with a vision of what the future might look like.

DSV – Global Transport and Logistics is a leading global supplier of transport and logistics services with more than 75,000 employees in over 80 countries working passionately to deliver great customer experiences and high-quality services.

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.

GLA & Co would like to extend its appreciation to its team members who played a pivotal role in this transaction. The team was led by both Alex Saleh and Ahmad Saleh, along with the valuable contributions of Fawaz Aldubaikhi, Maha El Miehy, Asad Ahmad, Shahad Al Humaidani, and Hussein Ali Bu Najimah.

FOR MORE INFORMATION ON THE TRANSACTION, PLEASE SEE HERE.