The eagerly anticipated collaboration between Neom and the Danish transport giant DSV, valued at $10 billion, has encountered a delay. The joint venture, which was scheduled to commence operations in the second quarter of this year, is currently on hold due to pending regulatory clearances.
While the hindrance has affected the timeline, DSV maintains a steadfast commitment to its partnership with Neom. The logistics firm is optimistic about the joint venture’s future, viewing the delay as part of the process for a project of such magnitude. DSV is actively providing transportation services in the interim, preparing to amplify its operations upon receiving the necessary approvals.
Reports indicate that the delay stems from awaiting consent from regulatory bodies in both Saudi Arabia and Egypt. Nevertheless, DSV reassures that they are geared up to scale their efforts once they overcome this regulatory barrier.
The Neom initiative, a cornerstone of Saudi Arabia’s Vision 2030, has faced several challenges in recent times. Financial concerns have led to a downward revision of population projections for Neom’s flagship project, The Line. Furthermore, there have been reports of escalated costs, with some estimates placing the futuristic city’s price tag at around $1.5 trillion.
Attracting sufficient foreign investment has been a challenge for the kingdom, which is crucial for financing the ambitious Neom project. Despite public reassurances from Saudi officials, there are indications that the Crown Prince is prepared for candid discussions about the feasibility of the Vision 2030 goals.