Saudi Arabia Railways (SAR) is moving forward with a Riyadh–Eastern Province passenger capacity upgrade on the Eastern Railway Network, linking Riyadh with the Eastern Province. A key step is export-backed financing tied to Stadler Rail’s entry into the Saudi market. KfW IPEX-Bank is acting as Initial Mandated Lead Arranger and Bookrunner for a CHF 254 million export credit facility that finances 10 new Stadler passenger trains. The banking consortium includes Commerzbank and UBS Switzerland, while Swiss Export Risk Insurance (SERV) provides export credit agency support. The structure is designed to bridge the long lead time between manufacturing and operational service, aligning funding and risk allocation with SAR’s capacity goals.
The financing builds on a 2024 procurement programme agreed between SAR and Stadler. That agreement covers an initial 10 trains, includes an option for another 10, and is accompanied by long-term maintenance arrangements. One report describes the total potential order value as around CHF 600 million, while another cites a contract worth 600 million Swiss francs and notes it as Stadler’s first signed in the GCC states. In practical fleet terms, SAR’s arrangement takes the Stadler order to 20 trains, with each train specified as five cars and 302 seats. SAR has framed the immediate objective as adding passenger capacity on the Riyadh–Hofuf–Dammam route within the Eastern line’s operating scope.
What Changes on the East Network: Fleet Size, Seats, and Timing
The operational impact is described in terms of both fleet expansion and passenger capacity. SAR stated that the combined order will lift the Eastern line’s fleet to 31 trains from 11, and capacity to about 6 million seats. The same update outlines a phased delivery and ramp-up: the first batch arrives in 2028 and enters service in 2029. That first batch is expected to lift capacity to 3.8 million seats on the Riyadh–Hofuf–Dammam route. In parallel reporting on the CHF 254 million facility, SAR also said the new fleet is expected to help raise annual East Network passenger capacity to more than 3.8 million, reinforcing the focus on near-term gains once new trains begin operating.
The financing model highlights how export credit can support capital-intensive rolling stock procurement. SERV’s buyer credit insurance framework is described as insuring financial institutions against defined payment risks associated with loans financing Swiss exports. The same source notes that its cover can address political, commercial, transfer, and force majeure risks, with a maximum cover ratio of 95% under its standard buyer credit product. For SAR, the export credit facility is also positioned as part of strategic plans to expand and develop its passenger fleet, with the transaction described as enhancing transportation options and intercity connectivity in line with national strategy priorities. This context helps explain why the programme is not only about trains, but about financing certainty through to passenger service.
At InnoTrans 2026 in Berlin, SAR paired the passenger-train financing agreement with wider rolling stock activity, including orders for 33 freight locomotives and 782 freight wagons, plus deals related to systems modernisation and maintenance. That broader backdrop matters for understanding the Riyadh Dammam passenger train fleet expansion as part of a larger network push, not a stand-alone purchase. Separately, SAR has also launched a tender for the procurement of 10 trains for passenger transport on the Northern Network. For the Eastern Network, the Stadler trains are explicitly intended to meet growing demand for rail transport services and to increase the number of seats available for passengers, making capacity uplift the core operational metric tied to the financing.
How is SAR financing the new Stadler passenger trains for the Eastern Network?
How many Stadler trains are included in SAR’s Eastern line programme, and what is the seating per train?
What fleet and seat-capacity changes are expected on the Eastern line?
When will the first batch of Stadler trains arrive and enter service?
What does the Riyadh–Dammam passenger train fleet expansion aim to achieve on SAR’s East Network?
