Saudi Arabia’s dream train to chug across the desert at $4,000 a night

Paolo Barletta, a dapper Italian railroad impresario, is channeling the spirit of the storied Orient Express and Fellini’s La Dolce Vita to bring luxury train travel to Saudi Arabia.

Starting late next year, his “Dream of the Desert” line will take passengers on an 800-mile journey across the kingdom’s dune-filled landscapes for between $4,000 and $28,000 a night, Barletta, CEO of Rome-based Arsenale Group, told The Circuit in Riyadh.

That shouldn’t be a problem for his target clientele of wealthy Saudis and free-spending international visitors looking for thrills as the once-secluded Gulf state keeps rolling out new tourist attractions.

“People here are spending crazy amounts of money to go to the Red Sea, to go to AlUla, to go to the Aseer region. So why not on a train?” Barletta, 39, said on Tuesday in an interview outside the King Abdulaziz International Convention Center.

Dressed in a grey double-breasted suit with purple polka-dotted tie and a white pocket handkerchief, the 39-year-old chief of his family-owned firm was escorting Saudi cabinet ministers and billionaire corporate executives onto a mock-up coach for the new line set up outside this week’s Future Investment Initiative conference.

The Dream of the Desert luxury train, now being assembled in Italy, evokes a gilded vision of Arabian travel, with interiors conceived by architect and interior designer Aline Asmar d’Amman, blending Italian style, Saudi heritage and the elegance of Europe’s Orient Express. Each coach features plush sleeper cabins with private bathrooms, marble-accented dining cars serving regional cuisine and lounges dressed in brass, walnut, and desert-hued fabrics.

“So we are a vertically integrated, supply-chain company where we engineer, manufacture and operate our own trains,” Barletta said. “The train cars are being made now in our factory in Puglia. They’ll be shipped to Saudi Arabia in Spring 2026 and be operative from the end of the year.”

Saudi Arabia is advancing four of the world’s largest tourism developments as part of its Vision 2030 plan. The $500 billion NEOM project anchors the push with a high-tech city and luxury destinations on the Red Sea. The $20 billion Red Sea Project is building eco-resorts across more than 90 islands, while Qiddiya, near Riyadh, is a $9 billion entertainment hub featuring theme parks and sports venues. Rounding out the effort is Diriyah Gate, a $63 billion heritage and hospitality complex transforming the birthplace of the Saudi state into a global cultural and leisure destination.

Once delivered, the train will feature 31 private cabins and two presidential suites, accommodating a maximum of 66 guests. Guests will have access to two restaurant cars offering a choice between authentic Saudi cuisine and international menus with Italian fusion influences, all “curated to a Michelin-level standard,” according to an Arsenale press release. A central Majlis lounge will provide space for socializing and relaxation.

While pricing has not yet been formally announced, Barletta said it would be similar to Arsenale’s La Dolce Vita Orient Express line, with its Fellini-inspired 60’s-style interiors, where tickets start at 3,500 euros ($4,000) per person per night, based on double occupancy. The top-of-the-line suites on the European route go for 25,000 euros a night.

Dream of the Desert will offer one- and two-night trips from Riyadh to the Al-Jawf station on the northern Saudi-Jordan border. Barletta said Arsenale will spend about $65 million on the Dream of the Desert project as part of a partnership with Saudi Arabia Railways and several government departments. It also has contracts to build luxury train lines in Egypt along the Nile and in Uzbekistan.

Saudi Transport Minister Saleh bin Nasser Al-Jasser said he was impressed after a walk-through on the model train car.

“It shows that different sectors within the economy – the transport and logistics, the tourism, the culture – working together to bring and facilitate services like this with the private sector is testimony that Saudi Arabia is very attractive to investment,” he said.

As for the pricing, he sees no obstacle.

“Obviously, it is designed to attract the high end of the market, but there are also services that attract different levels of people… priced at a few dollars,” he said. “There are different services that cater to all.”

Ackman sees Gaza truce easing Saudi path to Abraham Accords

Milling among the investors crowding the gilded hallways of the Future Investment Initiative conference in Riyadh, hedge fund magnate Bill Ackman expressed confidence that Saudi Arabia is moving closer to establishing formal links with Israel.

Ackman, founder of New York-based Pershing Square Capital Management, told The Circuit on Tuesday that he sees the current ceasefire in Gaza easing concerns in the Middle East about joining the 2020 Abraham Accords that normalized Israel’s ties with the UAE, Bahrain and Morocco.

“I think it’ll be in the relative short term,” Ackman said in an interview at the King Abdulaziz International Conference Center, where some 9,000 registrants are attending the conference. “I think there’s going to be a major peace dividend coming out of recent positive developments in the resolution of the Israeli-Gaza situation.”

Ackman, 59, whose personal fortune is estimated by Bloomberg at $8.4 billion, bought a nearly 5% stake in the Tel Aviv Stock Exchange last year with his wife Neri Oxman. He said he has also invested in Israeli venture capital funds for the last seven years or so.

Ackman was invited to the conference, often referred to as “Davos in the Desert,” to speak on Tuesday’s panel on geoeconomics, sharing the stage with JPMorgan Chase’s Jamie Dimon, BlackRock’s Larry Fink and Qualcomm’s Cristiano Amon. He said he was also meeting with other business people in the Gulf and talking about the potential of Israel’s regional integration.

“The only thing holding it back, in my view, was geopolitical risk,” Ackman said. “Investors don’t like geopolitical risk. They don’t like terrorism. They don’t like uncertainty.”

If conditions continue in a positive direction, Ackman said the Middle East at large will draw more foreign capital, a key goal of Saudi Arabia amid declining oil prices.

“As uncertainty goes down, as terrorists get set back, as peace deals get made, as the Abraham Accords expand, I think I’m very bullish for the region,” he said.

Dina Powell McCormick, meanwhile, an investment banker and former Deputy U.S. National Security Advisor during President Donald Trump’s first term, told the conference during a panel discussion that the Abraham Accords have played an important role in the Middle East’s economic development over the past five years.

The Israeli-Arab agreement also paved the way for a growing coalition of Arab and Muslim states that announced their support for the U.S.-brokered ceasefire in Gaza and joint international efforts to rebuild the wartorn territory, said Powell McCormick, a former senior Goldman Sachs executive who is now Vice Chairman and President of Global Client Services at BDT & MSD Partners, a U.S. merchant bank.

“I think it’s because, in many ways, the seeds were planted… not just by the United States, but over 50 countries, again, from Egypt and Jordan, the Emiratis, the Qataris, the Turks, the Pakistanis,” Powell McCormick continued. “This is remarkable.”

Powell McCormick, 52, who was born in Egypt before her parents moved to Dallas, Tex., said Saudi Arabia and its neighbors are exercising broad global influence on a scale that could not have been foreseen a decade ago.

“It would have been hard to imagine that this kingdom and this region of the world is now the dominant source of capital for innovation, the dominant source of capital for the change that we’re witnessing in every industry, artificial intelligence, biotech, robotics, longevity,” Powell McCormick said.

Saudi Arabia’s FII confab takes off with Day Zero soft launch

At the palatial Ritz-Carlton hotel in Riyadh’s diplomatic quarter on Monday, Saudi Arabia’s ninth Future Investment Initiative conference kicked off with a soft launch billed as Day Zero.

Organizers of the annual event, underwritten by the kingdom’s Public Investment Fund, set the first day aside for what they described as “exclusive, invitation-only conclaves, convening the world’s foremost investors, CEOs, and policymakers for unscripted dialogue.”

On Tuesday, doors open at the neighboring King Abdulaziz International Convention Center, where more than 6,000 registrants will spend three days networking between speeches by government leaders and corporate titans.

Headliners at the conference include Pershing Square’s Bill Ackman, JPMorgan Chase’s Jamie Dimon, Ruth Porat, of Alphabet and Google, Jane Fraser of Citi, Ray Dalio of Bridgewater Associates, Larry Fink of BlackRock, Stephen Schwarzman of Blackstone and Masayoshi Son of SoftBank.

Saudi leaders on the schedule include PIF Governor Yasir Al-Rumayyan, Energy Minister Prince Abdulaziz bin Salman and Amin H. Nasser, President and CEO of Aramco. As in previous years, whether and when Saudi Crown Prince Mohammed bin Salman will speak is the conference’s biggest guessing game.

Among political figures coming from abroad are Syria’s new President, Ahmed Al-Sharaa; China’s Vice President Han Zheng; Shehbaz Sharif, the Prime Minister of Pakistan; Paul Kagame, the President of Rwanda, Rachel Reeves, the U.K. Chancellor of the Exchequer, WTO Director-General Ngozi Okonjo-Iweala and Tokyo Gov. Yuriko Koike.

Saudi Arabia’s Future Investment Initiative forum heads to Tokyo

Saudi Arabia’s flagship business forum, the Future Investment Initiative, is expanding its global reach with a conference in Tokyo.

The FII Priority Asia Summit is slated for Nov. 30 to Dec. 1, and represents a strategic move by the kingdom to strengthen partnerships with key Japanese financial institutions, Nikkei Asia reports.

Major players such as Mitsubishi UFJ Financial Group and Sumitomo Mitsui are expected to attend the event, which is often referred to as “Davos in the desert.”

The FII Institute, founded by Saudi Arabia’s Public Investment Fund, has also sponsored conferences in Hong Kong, Rio de Janeiro and Miami, where U.S. President Donald Trump spoke in February.

The Daily Circuit: Saudi business conference tallies billions in deals

👋 Hello from the Middle East!

In the Daily Circuit today, we’re looking at Day 3 of the Future Investment Initiative conference in Riyadh, the Saudi Public Investment Fund’s deal with Canada’s Brookfield Asset Managment, ACWA Power’s $690 million financing deal from Kuwait and ADQ’s acquisition of a minority stake in Sotheby’s auction house.

After three days of working the vast marble halls and plush meeting rooms of the Ritz Carlton Hotel in Riyadh, corporate chiefs are shaking hands on billions of dollars in deals arranged at Saudi Arabia’s annual Future Investment conference.

With FII’s outgoing CEO Richard Attias estimating that the conference would spawn some $28 billion in investments, executives from Wall Street, the Gulf, China and elsewhere vied for attention in announcing their latest deals.

Among the most watched tie-ups was the preliminary agreement announced by the Saudi Public Investment Fund to back Brookfield Asset Management’s new $2 billion Middle East fund, boosting the Canadian investment firm’s ability to finance deals in the Gulf.

New York-based Z Capital Group pledged as much as $2 billion for investments in Saudi Arabia, Bloomberg reports. It said the bank will launch a direct lending fund with approximately $1 billion early next year that offers senior secured and asset-backed loans to small and medium-sized businesses.

The National Bank of Kuwait signed $1.6 billion in deals at the FII conference, including a $690 million agreement with ACWA Power to support the Saudi energy and desalination company’s expansion plans in and outside the kingdom, KUNA reports.

Throughout this week, The Circuit’s Jonathan Ferziger and Omnia Al Desoukie have been on the conference floor, bringing you the deals, insights and chatter emanating from FII. We would like to know your thoughts and receive your feedback. You can reach us by replying to this newsletter or emailing us at [email protected].

CIRCUIT INTERVIEW

ACWA Power works to cut desalination costs, fossil fuel use

ACWA Power, the Saudi power and desalination company that operates in more than a dozen countries across the Middle East, Africa and Asia, says it has cut energy consumption by 80% over the past decade while reducing its use of fossil fuels, The Circuit’s Omnia Al Desoukie reports.

With its main offices in Riyadh and Jeddah, ACWA Power started moving away from conventional thermal plants two decades ago to adopt more efficient membrane technology. It devotes formidable resources to research and development to address water scarcity in some of the world’s most arid regions. At the FII conference, the company signed a $690 million financing deal with the National Bank of Kuwait.

In an interview with The Circuit, ACWA Power Executive Vice President for Innovation & New Technology Thomas Altmann talks about the company’s efforts to bring down the cost of desalination while embracing hydrogen and other more sustainable sources of energy.

Click here to read the full interview.

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Dec. 5-6, Abu Dhabi: Milken Institute Middle East and Africa Summit. Corporate executives, investors, government officials, and philanthropists gather to address the globe’s most pressing issues. St. Regis Saadiyat Island.

Dec. 5-8, Abu Dhabi: Abu Dhabi Grand Prix 2024. World’s fastest race drivers compete in Abu Dhabi leg of the Formula One season. Yas Marina Circuit.

Dec . 9-10, Abu Dhabi: The Bitcoin Conference. The conference connects with industry leaders, and experiences a dynamic expo hall featuring a fusion of technology and art. ADNEC.

Dec. 9-12, Abu Dhabi: Abu Dhabi Finance Week. Market experts and entrepreneurs from all over the world discuss the latest market trends. Al Maryah Island, ADGM Square.

The Weekly Circuit: Saudi Arabia courts foreign investment at FII

👋 Hello from the Middle East!

In the Weekly Circuit today, we’re covering the Future Investment Initiative in Riyadh, the kingdom’s banner event for showcasing its economic transition. We’re also looking at the new Goldman Sachs office in the Saudi capital, expansion plans for Saudi Arabia’s ROSHN homebuilding company and the London Stock Exchange’s new index for Shariah-compliant securities.

Saudi Arabia is shifting gears, emphasizing its own needs for foreign capital over investing the kingdom’s wealth abroad.

That’s the message being delivered this week to some 7,100 participants from across the finance world at this year’s eighth edition of the Future Investment Initiative.

Addressing a packed hall at the King Abdul Aziz International Conference Center in Riyadh’s diplomatic quarter, Saudi leaders put it simply:

“People used to come to us and ask for money,” said Yasir Al Rumayyan, Governor of the kingdom’s near trillion-dollar Public Investment Fund and Chairman of Saudi Aramco, the world’s largest oil company. “We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”

Since its inception in 2017, the FII conference has been a key tool for outlining Saudi Crown Prince Muhammed bin Salman’s Vision 2030 blueprint for overhauling the economy to reduce its dependence on fossil fuels. That strategy has unleashed a torrent of construction projects across the country, including the $1.5 trillion Neom development on the kingdom’s west coast, which has soaked up Saudi funds and prompted the new emphasis on foreign investment.

Like the World Economic Forum in Davos, Switzerland, after which the Saudi conference is modeled, FII features some of the biggest names on Wall Street who are asked to prognosticate on prospects for the global economy.

Headliners include Ray Dalio, Founder of Bridgewater Associates; Harvey Schwartz, CEO of Carlyle; Jenny Johnson, President and CEO of Franklin Templeton; David Solomon, Chairman and CEO of Goldman Sachs; Marc Rowan, Co-Founder and CEO of Apollo Global Management and Jane Fraser, CEO of Citi.

FII is also a showcase for Saudi companies, which have lined the conference center and adjoining Ritz Carlton Hotel with booths to entice investors and hawk their wares. Aramco, which sponsors golf tournaments around the world, set up a putting green at FII to attract conference visitors, while Saudia Group parked one of its Lilium electric vertical take-off and landing (eVTOL) jets outside the conference site.

While outlining the kingdom’s commitment to developing sustainable fuels, Saudi Energy Minister Prince Abdulaziz bin Salman said oil will remain a key driver of the economy. “We will monetize every molecule of energy this land has, period,” he said.

Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected].

CIRCUIT INTERVIEW

ROSHN seeks to transform Saudi market with upscale housing

Central to Saudi Arabia’s economic transformation is state-owned real estate developer ROSHN, which has started to seed greater metropolitan Riyadh and other urban areas with upscale residential communities aimed at both Saudi and expat professionals.

ROSHN’s Waleed Bawaked, Senior Director of Strategy and Planning, and Roger Fatovic, Executive Director of Program Management, outline the company’s blueprint for growth in an interview with The Circuit’s Omnia Al Desoukie.|

ROSHN was established in 2020 by the Public Investment Fund and has raised $4.3 billion in the past two years.

Click here to read the full story.

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📷 Photo of the Week

Dec. 5-6, Abu Dhabi: Milken Institute Middle East and Africa Summit. Corporate executives, investors, government officials, and philanthropists gather to address the globe’s most pressing issues. St. Regis Saadiyat Island.

Dec. 5-8, Abu Dhabi: Abu Dhabi Grand Prix 2024. World’s fastest race drivers compete in Abu Dhabi leg of the Formula One season. Yas Marina Circuit.

Dec . 9-10, Abu Dhabi: The Bitcoin Conference. The conference connects with industry leaders, and experiences a dynamic expo hall featuring a fusion of technology and art. ADNEC.Dec. 9-12, Abu Dhabi: Abu Dhabi Finance Week. Market experts and entrepreneurs from all over the world discuss the latest market trends. Al Maryah Island, ADGM Square.

Saudi leaders say investors should put money into kingdom

Saudi Arabia is shifting gears, emphasizing its own needs for foreign capital over investing the kingdom’s wealth abroad.

That’s the message being delivered this week to some 7,100 participants from across the finance world at the eighth annual edition of the Future Investment Initiative.

Addressing a packed hall at the King Abdul Aziz International Conference Center in Riyadh’s diplomatic quarter on Tuesday, Saudi leaders put it simply:

“People used to come to us and ask for money,” said Yasir Al Rumayyan, Governor of the kingdom’s near trillion-dollar Public Investment Fund and Chairman of Saudi Aramco, the world’s largest oil company. “We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”

Since its inception in 2017, the FII conference has been a key tool for outlining Saudi Crown Prince Muhammed bin Salman’s Vision 2030 blueprint for overhauling the economy to reduce its dependence on fossil fuels. That strategy has unleashed a torrent of construction projects across the country, including the $1.5 trillion Neom development on the kingdom’s west coast, which have soaked up Saudi funds and prompted the new emphasis on foreign investment.

Like the World Economic Forum in Davos, Switzerland, after which the Saudi conference is modeled, FII features some of the biggest names on Wall Street who are asked to prognosticate on prospects for the global economy.

Headliners on Day 1 included Ray Dalio, Founder of Bridgewater Associates; Harvey Schwartz, CEO of Carlyle; Jenny Johnson, President and CEO of Franklin Templeton; David Solomon, Chairman and CEO of Goldman Sachs; Marc Rowan, Co-Founder and CEO of Apollo Global Management and Jane Fraser, CEO of Citi.

FII is also a showcase for Saudi companies, which have lined the conference center and adjoining Ritz Carlton Hotel with booths to entice investors and hawk their wares. Aramco, which sponsors golf tournaments around the world, set up a putting green at FII to attract conference visitors, while Saudia Group parked one of its Lilium electric vertical take-off and landing (eVTOL) jets outside the conference site.

While outlining the kingdom’s commitment to developing sustainable fuels, Saudi Energy Minister Prince Abdulaziz bin Salman said oil will remain a key driver of the economy. “We will monetize every molecule of energy this land has, period,” he said.

The Daily Circuit: Saudi Arabia invites foreign investment as FII opens

👋 Hello from Saudi Arabia

In the Daily Circuit today, we’re covering opening day at the Future Investment Initiative in Riyadh, the kingdom’s banner event for showcasing its economic transition. Elsewhere, we’re looking at the new Goldman Sachs office in the Saudi capital, French President Emmanuel Macron’s state visit to Morocco, Masdar’s clean steel project in the UAE and The United Bank’s upcoming share sale in Egypt.

Saudi Arabia is shifting gears, emphasizing its own needs for foreign capital over investing the kingdom’s wealth abroad.

That’s the message being delivered today to some 7,100 participants from across the finance world at this year’s eighth edition of the Future Investment Initiative.

Addressing a packed hall at the King Abdul Aziz International Conference Center in Riyadh’s diplomatic quarter, Saudi leaders put it simply:

“People used to come to us and ask for money,” said Yasir Al Rumayyan, Governor of the kingdom’s near trillion-dollar Public Investment Fund and Chairman of Saudi Aramco, the world’s largest oil company. “We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”

Since its inception in 2017, the FII conference has been a key tool for outlining Saudi Crown Prince Muhammed bin Salman’s Vision 2030 blueprint for overhauling the economy to reduce its dependence on fossil fuels. That strategy has unleashed a torrent of construction projects across the country, including the $1.5 trillion Neom development on the kingdom’s west coast, which have soaked up Saudi funds and prompted the new emphasis on foreign investment.

Like the World Economic Forum in Davos, Switzerland, after which the Saudi conference is modeled, FII features some of the biggest names on Wall Street who are asked to prognosticate on prospects for the global economy.

Headliners on Day 1 included Ray Dalio, Founder of Bridgewater Associates; Harvey Schwartz, CEO of Carlyle; Jenny Johnson, President and CEO of Franklin Templeton; David Solomon, Chairman and CEO of Goldman Sachs; Marc Rowan, Co-Founder and CEO of Apollo Global Management and Jane Fraser, CEO of Citi.

FII is also a showcase for Saudi companies, which have lined the conference center and adjoining Ritz Carlton Hotel with booths to entice investors and hawk their wares. Aramco, which sponsors golf tournaments around the world, set up a putting green at FII to attract conference visitors, while Saudia Group parked one of its Lilium electric vertical take-off and landing (eVTOL) jets outside the conference site.

While outlining the kingdom’s commitment to developing sustainable fuels, Saudi Energy Minister Prince Abdulaziz bin Salman said oil will remain a key driver of the economy. “We will monetize every molecule of energy this land has, period,” he said.

Throughout this week, The Circuit’s Jonathan Ferziger and Omnia Al Desoukie are on the conference floor, bringing you the deals, insights and chatter emanating from FII. We would like to know your thoughts and receive your feedback. You can reach us by replying to this newsletter or emailing us at [email protected].

Saudi Arabia eyes Chile in quest for lithium to supply EV industry

Saudi Arabia’s quest for lithium to power its nascent electric vehicle industry is leading to stronger links with South America, as evidenced by the Future Investment Initiative’s conference in Brazil earlier this month.

Saudi-owned Almar Water Solutions is now looking to form a partnership with Chile’s state mining giant Codelco in its planned Maricunga lithium mining project, Reuters reports.

Almar’s CEO Carlos Cosin told the news agency that the Spain-based firm, which focuses on water solutions for renewable energy production, wants to leverage its technology in the extraction of battery-metal lithium, a water-intensive process.

As part of a Saudi conglomerate, Cousin said Almar would be able to bring in another strong financial partner if included in a consortium to develop the Maricunga salt flat.

The company’s technology can be used in metal separation in the microelectronics industry, direct lithium extraction and battery recycling, he said.

Future Investment Initiative decamps to Brazil amid kingdom’s push into Latin America

Saudi Arabia’s Future Investment Initiative, which hosts the annual “Davos in the Desert” gabfest, begins its first gathering in Latin America today.

Following a buzzy meeting of FII PRIORITY in Miami earlier this year, the kingdom is broadening its sphere of influence with a summit drawing some of South America’s biggest names in business and government to the Copacabana Palace in Rio de Janeiro.

This iteration will delve into climate action, the Gulf’s emergence among the BRICS nations and new technology. 

FII, which counts the Public Investment Fund as a founding partner, is bringing together powerbrokers amid a flurry of trade activity between Saudi Arabia and Brazil.

The two countries have discovered common ground on food security, mining and aviation, with Brazil hitting a 10-year high in export activity to the kingdom in 2023. 

The most recent deals include an agreement between Lulu, the Middle East’s biggest supermarket chain, and Brazil’s trade agency to promote Brazilian foodstuffs in the Saudi market, signed last week.

In May, Brazilian mining giant Vale sold a 10% stake of its base metals unit for $2.5 billion to Manara Minerals, a joint venture between Saudi mining firm Ma’aden and the PIF.

That same month, Brazilian aviation company Embraer inked cooperation agreements in the kingdom, with the airplane manufacturer planning to build or assemble its aircraft in Saudi Arabia under the deal.

All of this comes as the kingdom mulls opening an investment office in South America’s biggest economy.

Speakers on the agenda at this FII gathering include Yasir Al-Rumayyan, Governor of the Public Investment Fund and Chairman of the FII Institute; Reema Bint Bandar Al Saud, Saudi Ambassador to the U.S.; Faisal Bin Bandar Al Saud, Chairman of the Saudi Esports Federation; and Mike Pompeo, former U.S. Secretary of State.

Also scheduled to speak are Khalid bin Abdulaziz Al-Falih, Saudi Minister of Investment; Martin Sorrell, Executive Chairman of S4 Capital Group; André Esteves, Chairman of BTG Pactual; Bernard Mensah, President of International at Bank of America; and Julia Dias Leite, CEO of the Brazilian Center for International Relations.