The Neom project, a $10 billion joint venture between Neom and Danish transport company DSV, has faced a significant delay due to missing regulatory approvals. Despite this setback, DSV remains committed to the partnership and is providing transportation services for Neom until the joint venture is finalized.
Neom, Saudi Arabia’s megaproject, has encountered another obstacle with the delay of its joint venture with DSV. The regulatory approvals required for the partnership are still pending, with both Saudi Arabia and Egypt yet to grant the necessary permissions. However, DSV is confident in the long-term potential of the cooperation and believes that such setbacks are expected for a project of this magnitude.
In recent months, Neom has faced challenges including reductions in population estimates for its flagship project, The Line, and concerns over the escalating costs of the megacity, which some reports estimate to be $1.5 trillion. Despite these challenges, Saudi officials have been working to dispel rumors that plans for the futuristic Neom megacity have been scaled back. However, reports suggest that there may be discussions regarding the ambitious Vision 2030 plans in light of the challenges faced by the project.
Despite these difficulties, both companies remain prepared to ramp up their efforts as soon as the required approvals are received.
