Saudi Arabia Orders 20 High-Speed Trains From Spain’s Talgo

Summary

Saudi Arabia has ordered 20 high-speed trains from Spain's Talgo in a €1.33 billion deal that lifts the company's backlog to record levels and includes long-term maintenance services. The agreement deepens rail ties between the two countries and provides a boost to Spain’s rail sector amid recent safety concerns at home.

MADRID, Feb 8 — Saudi Arabia has placed an order for 20 high-speed trains from Spanish rail manufacturer Talgo, a deal that significantly boosts the company’s backlog and provides a timely lift to Spain’s rail industry.

Talgo said the contract adds €1.33 billion ($1.57 billion) to its order book, pushing its total backlog to nearly €6 billion, the highest level in the company’s history. The agreement also includes long-term maintenance services for the new fleet, strengthening Talgo’s recurring revenue base.

Spain’s Transport Minister Óscar Puente welcomed the deal, saying it helps secure the role of Spain’s state-owned rail operator Renfe as manager of Saudi Arabia’s high-speed rail operations through 2038. In a post on X, Puente said the broader framework agreement would channel more than €2.8 billion to Spanish companies.

Support for Spain’s Rail Sector

The order comes at a sensitive moment for Spain’s rail industry, which has faced heightened scrutiny following a fatal train collision near Córdoba last month that killed 46 people. The accident reignited debate over whether investment in rail safety and maintenance has kept pace with rising passenger demand.

Against that backdrop, the Saudi contract provides a vote of confidence in Spanish rail technology, manufacturing standards and operational expertise.

Deepening Saudi–Spanish Rail Ties

Saudi Arabia has operated Talgo-built high-speed trains since 2018 as part of the Haramain High-Speed Railway linking Mecca and Medina. The new order expands that long-standing partnership and underscores the kingdom’s continued investment in modern transport infrastructure as it advances its economic diversification strategy.

For Talgo, the deal reinforces its position as one of Europe’s leading exporters of high-speed rail equipment, with international contracts playing an increasingly central role in its growth outlook.

Why This Matters

The deal highlights Saudi Arabia’s sustained push to modernize transport infrastructure while strengthening industrial ties with Europe. For Spain, it provides economic reassurance at a moment of domestic scrutiny, supports high-value manufacturing jobs, and locks in decades of overseas operational revenue through Renfe.

For Talgo, the order secures long-term visibility, improves cash-flow stability through maintenance services, and reinforces its standing in the highly competitive global high-speed rail market.

FAQs

Q1. How much is the Talgo–Saudi Arabia deal worth?

The contract adds €1.33 billion to Talgo’s order backlog and includes train deliveries and maintenance services.

Q2. Why is this deal important for Talgo?

It pushes Talgo’s backlog close to €6 billion, a record, and strengthens recurring revenue from maintenance.

Q3. What does it mean for Spain’s rail industry?

It provides commercial and reputational support at a time of increased scrutiny following a fatal rail accident.

Q4. What role does Renfe play in Saudi Arabia?

Renfe will continue managing Saudi Arabia’s high-speed rail operations through 2038.

Q5. Has Saudi Arabia worked with Talgo before?

Yes. Talgo trains have operated on the Haramain high-speed rail line since 2018.