Saudi Arabia will host Italy’s first luxury train under a $78m financing package
Italian rail and hospitality specialist Arsenal has announced a strategic agreement with SIMEST, part of Cassa Depositi e Prestiti Group, for Dream of the Desert, the first Italian luxury train operating in Saudi Arabia.
This agreement marks Arsenal’s entry into the Middle East market and demonstrates the deep economic cooperation between Italy and the Kingdom.
The deal includes a joint equity investment of €37m ($40m) by Arsenal and SIMEST, and a €35m ($38m) loan provided by the Saudi Tourism Development Fund.
Saudi railway network
The project stems from an agreement signed by Arsenal with Saudi Arabia Railways that provides access to the Kingdom’s national rail network.
SIMEST participates with an investment of €15m ($16.2m) through the Infrastructure section of Fund 394/81, an area managed in accordance with the Ministry of Foreign Affairs and International Cooperation to support Italian companies that carry out large international contracts.
The agreement is part of the framework for increasing economic relations in Italy–Saudi, reinforced by the opening of the new SIMEST office in Riyadh and the Cooperation Agreement signed between CDP, SIMEST and the Italo-Arab Chamber of Commerce (JIACC). Dream of the Desert is among the first projects that offer a concrete approach to this relationship, introducing a public-private partnership model in the railway sector.
Completely designed, manufactured and assembled in Italy, the train will be developed at Arsenal’s industrial sites in Brindisi and Bergamo. Cantieri Ferroviari Italiani will act as the general contractor of the Arsenal Group, connecting a network of specialized Italian SMEs across design, advanced mechanics, engineering, luxury and hospitality.
Arsenal’s sponsorship of Dream of the Desert
Paolo Barletta, CEO of Arsenal, said: “Desert Dream is a flagship project for our Group and the international rail industry.
“The agreement signed with SIMEST and the Saudi institutions ensures that the cooperation between companies and institutions can create long-term value and promote the beauty of Italy around the world”.
Regina Corradini D’Arienzo, CEO of SIMEST, said: “The agreement signed with a leading industrial player such as Arsenal for the delivery of the Made in Italy strategic project confirms the strengthening of SIMEST’s role in supporting the Italian textile industry and its supply chains.
“With the first project carried out under the equity plafond of the Public Infrastructure Investments Fund, SIMEST participates directly as a shareholder to improve the competitiveness of our companies involved in high-value infrastructure projects, while also promoting the expansion of Made in Italy in strategic, high-growth markets such as Saudi Arabia.
“This tool, created by SIMEST under the supervision of the Ministry of Foreign Affairs and International Cooperation and in collaboration with Cassa Depositi e Prestiti, is fully compatible with the approach of the ‘Sistema Italia’, which – under the coordination of the Farnesina – includes CDP, SIMEST, ICE and SACE.
“It is an integrated approach designed to provide Italian companies with systematic and consistent support-from institutional actions to financial instruments-to face them effectively”
A comfortable train experience in Saudi Arabia
The super-luxury train will offer exclusive one- and two-night tours, including select indoor and outdoor experiences. From Riyadh, the tour will visit places including Hail and UNESCO World Heritage sites under the Taste of AlUla tour, which extends to the Jordanian border.
Architect and interior designer Aline Asmar d’Amman, founder of the studio Culture in Architecture, designed the interiors.
