Two Italian companies have formally agreed to invest 37 million euros in the development of Saudi Arabia’s ultra-luxury rail tourism project, “Dream of the Desert,” marking a significant milestone in Saudi-Italian economic collaboration and the expansion of high-end experiential tourism in the Kingdom.
Italian rail and hospitality specialist Arsenale S.p.A. and Simest S.p.A., a subsidiary of Italy’s Cassa Depositi e Prestiti (CDP) Group, signed a strategic agreement to provide a joint equity investment of €37 million toward the project — equivalent to roughly 163 million Saudi riyals — which represents nearly half of the total project cost estimated at SAR 317 million.
In addition to the equity injection from the Italian partners, the Saudi Tourism Development Fund will contribute a loan of approximately €35 million to support the roll-out of what is expected to be the first ultra-luxury train service in the Middle East.
According to industry sources, Simest’s share of the equity investment totals around €15 million, structured under a programme co-managed with the Italian Ministry of Foreign Affairs and aimed at supporting Italian firms engaged in significant international contracts that reinforce Italy’s industrial supply chains.
“Dream of the Desert” is designed, manufactured and outfitted in Italy, with carriages and luxury interiors produced through Arsenale’s industrial hubs, reinforcing its reputation in high-end hospitality and experiential travel. The project is a strategic extension of Arsenale’s entry into the Middle Eastern market, bringing Italian design, craftsmanship, and bespoke hospitality standards to Saudi Arabia’s rapidly growing tourism sector.
The luxury train — featuring an intimate configuration for around 66 passengers across lavish suites — is being planned to operate on existing rail infrastructure, with itineraries that span iconic Saudi destinations. These are expected to showcase natural landscapes and UNESCO-listed cultural sites on journeys that may extend one to two nights from Riyadh through Hail and potentially to Al-Qurayyat near the Jordanian border.
Saudi officials and project backers describe the train not merely as a transport service but as a transformative tourism experience, intended to attract high-net-worth travellers and deepen the Kingdom’s portfolio of luxury travel offerings. It underscores Saudi Arabia’s broader Vision 2030 ambitions to diversify its tourism ecosystem and position the nation as a global destination for distinct and high-end travel experiences.
Media reports indicate that reservations for “Dream of the Desert” are expected to open ahead of its projected service launch by late 2026, contingent on final manufacturing and logistics completion timelines.
The financing agreement and joint investment framework signal deepening economic ties between Saudi Arabia and Italy, particularly in sectors such as transportation, tourism infrastructure, and hospitality. Establishment of a Simest office in Riyadh and coordination with bilateral bodies are seen as reinforcing long-term collaboration in substantial cross-border projects.
As the “Dream of the Desert” project progresses toward operation, it exemplifies a convergence of strategic public-private cooperation, international investment, and cultural exchange — positioning long-distance luxury rail tourism as a hallmark of next-generation travel in the Middle East.
