Italian rail and hospitality company Arsenale has signed a strategic agreement with SIMEST, part of Italy’s Cassa Depositi e Prestiti (CDP) Group, to develop Dream of the Desert, the first Italian ultra-luxury train set to operate in Saudi Arabia.

The agreement marks Arsenale’s entry into the Middle East and underscores growing economic ties between Italy and Saudi Arabia. The transaction includes a joint equity investment of $40 million by Arsenale and SIMEST, alongside a $38 million loan from the Saudi Tourism Development Fund.

The project is based on an agreement between Arsenale and Saudi Arabia Railways granting access to the Kingdom’s national rail network. SIMEST is contributing $16.2m through the Infrastructure Section of Fund 394/81, a facility managed in coordination with Italy’s Ministry of Foreign Affairs and International Cooperation to support Italian companies undertaking major international projects. 

The deal forms part of expanding Italy–Saudi economic ties, supported by the opening of SIMEST’s Riyadh office and a memorandum of understanding between CDP, SIMEST and the Italo-Arab Chamber of Commerce (JIACC). Dream of the Desert is among the first projects to advance this partnership through a public-private railway model.

Designed, manufactured and fitted out entirely in Italy, the train will be developed at Arsenale’s hubs in Brindisi and Bergamo, with Cantieri Ferroviari Italiani acting as general contractor and coordinating a network of Italian SMEs.

Arsenale CEO Paolo Barletta described Dream of the Desert as a flagship project for the group and a pioneering example of public-private partnership in the luxury railway sector, highlighting its role in showcasing Italian expertise internationally.

SIMEST CEO Regina Corradini D’Arienzo said the agreement reflects SIMEST’s expanding role in supporting Italian companies and supply chains involved in high value-added infrastructure projects, while promoting the international growth of Made in Italy in strategic markets such as Saudi Arabia.

The ultra-luxury train will offer exclusive one- and two-night itineraries, combining curated onboard and offboard experiences. Departing from Riyadh, routes will include destinations such as Hail and UNESCO World Heritage sites along the Taste of AlUla itinerary, extending to the Jordanian border.

The train’s interiors were designed by architect and interior designer Aline Asmar d’Amman, founder of the studio Culture in Architecture.