Saudi Arabia to establish cruise shipbuilding and refit expertise with Fincantieri Arabia joint venture

Saudi Arabia has partnered with Fincantieri, one of the world’s largest shipbuilding groups, to consolidate its expertise in cruise shipbuilding and refit, ahead of the launch of its first domestic cruise brand, AROYA Cruises.

The Fincantieri Arabia joint venture between the Italian shipbuilder and Saudi Arabia was announced at the Fincantieri Industrial Conference in Riyad, where Fincantieri CEO Pierroberto Folgiero highlighted the Group’s vision, strategy, and services that meet the strategic interests and priorities of the Kingdom’s Vision 2030.

Folgiero said Fincantieri Arabia will be dedicated to advancing the Saudi vision by harnessing its unique global strengths as an expert in cruise, defense, and offshore shipbuilding and refit sectors. Fincantieri is the only shipbuilding group active in all high-tech marine industry sectors.

Fincantieri Arabia will promote the Group’s transversal capabilities in shipbuilding, maritime equipment and systems, and naval logistic support services, according to Folgiero.

This will include training and simulation, coordinating stakeholder relationships in the Kingdom, and identifying local partners. Fincantieri will also transfer technological expertise for shipbuilding in cruise, defense, and offshore sectors, creating opportunities for Saudi nationals.

“Our commitment to the Kingdom of Saudi Arabia is steadfast. Fincantieri stands out in the shipbuilding industry for its vertically integrated model and our leadership across naval, cruise, and oil and gas sector,” said Pierroberto Folgiero, Managing Director & CEO, Fincantieri. 

“We are proud to offer these world-class capabilities built on decades of naval heritage and excellence to help the Kingdom achieve its Vision 2030 objectives,” he added. “Given the maritime industry’s pivotal role under Vision 2030, we eagerly anticipate establishing strategic partnerships. Through these collaborations, we aim to enhance local technological capabilities, create opportunities for Saudi talent, and foster knowledge exchange.”

Shipbuilding, with its high capital expenditure components, technologies, and long value chain, plays a pivotal role in Saudi Vision 2030 as the Kingdom fosters new industrial sectors in its transition towards a more sustainable and diversified economy.

The new joint venture is also a move by Saudi Arabia to keep more investment in AROYA Cruises within the Kingdom. When the former World Dream was acquired from Dream Cruises for more than US $300 million in 2021, it was sent to a shipyard in Germany for a lengthy and expensive refit and refurbishment.

The total cost of the bow-to-stern refurbishment has not been released, but is likely well in excess of US $100 million. Once the ship is in operation for AROYA Cruises from December, 2024 onwards, it will require regular dry dock servicing and technical works, which Saudi Arabia is keen to have done within the country and not in Europe.

AROYA Cruises confirmed during the recent Arabian Travel Market in Dubai that it has plans to expand its cruise fleet to three ships with two newbuild designs, and this joint venture with Fincantieri would appear to suggest that Saudi Arabia is looking to follow the Chinese model and have both ships built in the Kingdom.