News DeskRiyadh, Saudi Arabia – Italian luxury rail operator Arsenale S.p.A has signed a strategic financing agreement with SIMEST, part of Italy’s Cassa Depositi e Prestiti (CDP) Group, to develop Dream of the Desert, the first Italian-designed ultra-luxury train to operate in Saudi Arabia, marking Arsenale’s entry into the Middle East market.
The transaction is valued at more than €70 million and combines a €37 million joint equity investment by Arsenale and SIMEST with a €35 million loan from the Saudi Tourism Development Fund, underlining strong public-private cooperation between Italy and Saudi Arabia.
The project follows an agreement between Arsenale and Saudi Arabia Railways (SAR), granting access to the Kingdom’s national rail network. SIMEST will invest €15 million through the Infrastructure Section of Italy’s Fund 394/81, which supports Italian companies involved in major international infrastructure contracts that strengthen domestic industrial supply chains.
The initiative forms part of the expanding economic partnership between Italy and Saudi Arabia, reinforced by the recent opening of SIMEST’s Riyadh office and a Memorandum of Understanding signed by CDP, SIMEST and the Italo-Arab Chamber of Commerce.
Entirely designed, manufactured and fitted out in Italy, the train will be developed through Arsenale’s industrial hubs in Brindisi and Bergamo. Cantieri Ferroviari Italiani (CFI) will act as general contractor, coordinating a network of specialised Italian small and medium-sized enterprises across engineering, advanced mechanics, luxury design and hospitality.
Paolo Barletta, Chief Executive Officer of Arsenale, described Dream of the Desert as a flagship project for both the company and the international railway sector, highlighting its role in promoting Italian industrial excellence and innovative public-private partnership models.
SIMEST Chief Executive Officer Regina Corradini D’Arienzo said the deal strengthens SIMEST’s role in supporting Italian supply chains and expanding Made in Italy in high-growth markets such as Saudi Arabia, through direct equity participation in high-value infrastructure projects.
The ultra-luxury train will offer exclusive one- and two-night journeys departing from Riyadh, travelling to destinations including Hail, AlUla — a Unesco World Heritage site — and onward to the Jordanian border. Onboard and offboard experiences will be curated, with interiors designed by architect Aline Asmar d’Amman.
Pre-reservations are now open through the website. For details on itineraries, experiences and departures, please visit www.dreamofthedesert.com
