Italian rail and hospitality specialist Arsenale has announced a strategic agreement with SIMEST, part of the Cassa Depositi e Prestiti Group, for Dream of the Desert, the first Italian ultra-luxury train to operate in Saudi Arabia.
The deal marks Arsenale’s entry into the Middle Eastern market and reflects deepening economic cooperation between Italy and the Kingdom.
The transaction includes a joint equity investment of €37m ($40m) by Arsenale and SIMEST, alongside a €35m ($38m) loan provided by the Saudi Tourism Development Fund.
Saudi rail network
The project stems from an agreement signed by Arsenale with Saudi Arabia Railways granting access to the Kingdom’s national railway network.
SIMEST is participating with an investment of €15m ($16.2m) through the Infrastructure Section of Fund 394/81, a facility managed in agreement with the Ministry of Foreign Affairs and International Cooperation to support Italian companies executing major international contracts.
The agreement sits within the framework of expanding Italy–Saudi economic ties, reinforced by the opening of SIMEST’s new office in Riyadh and a Memorandum of Understanding signed between CDP, SIMEST and the Italo-Arab Chamber of Commerce (JIACC). Dream of the Desert is among the first projects to give concrete form to this partnership, introducing a public-private partnership model in the railway sector.
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 will act as the Arsenale Group’s general contractor, coordinating a network of specialised Italian SMEs across design, advanced mechanics, engineering, luxury and hospitality.
Arsenale financing for Dream of the Desert
Paolo Barletta, CEO of Arsenale, said: “Dream of the Desert is a flagship project for our Group and for the international railway industry. It enhances the value of Italian SMEs and represents a pioneering example of public-private partnership in the luxury railway sector.
“The agreement signed with SIMEST and Saudi institutions confirms how cooperation between companies and institutions can create long-term value and promote Italian excellence worldwide”.
Regina Corradini D’Arienzo, CEO of SIMEST, said: “The agreement signed with a leading industrial player such as Arsenale for the delivery of a strategic project for Made in Italy confirms the strengthening of SIMEST’s role in supporting Italy’s productive fabric and its supply chains.
“Through the first transaction carried out under the equity plafond of the public Infrastructure Investments Fund, SIMEST participates directly as a shareholder to enhance the competitiveness of our companies engaged in high value-added infrastructure projects, while also fostering the expansion of Made in Italy in strategic, high-growth-potential markets such as Saudi Arabia.
“This instrument, developed by SIMEST under the guidance of the Ministry of Foreign Affairs and International Cooperation and in collaboration with Cassa Depositi e Prestiti, fully aligns with the ‘Sistema Italia’ approach, which – under the coordination of the Farnesina – brings together CDP, SIMEST, ICE and SACE.
“It is an integrated approach designed to provide Italian companies with structured and complementary support—from institutional action to financial instruments—to effectively address the”
Luxury rail experience in Saudi Arabia
The ultra-luxury train will offer exclusive one- and two-night itineraries, combining curated onboard and offboard experiences. Departing from Riyadh, journeys will travel to destinations including Hail and UNESCO World Heritage sites under the Taste of AlUla itinerary, extending to the Jordanian border.
Architect and interior designer Aline Asmar d’Amman, founder of the studio Culture in Architecture, designed the interiors.
