Saudi Arabia's Merak Capital has set up a private equity fund tailored for the fashion sector that aims to bring local industry and talent to the global stage.
The 300 million Saudi riyal ($80 million) Fashion Fund, managed by Merak – with the kingdom's Cultural Development Fund as an anchor investor – will invest across the fashion value chain, the Riyadh-based private investment firm said at the first Cultural Investment Conference in Riyadh on Tuesday.
It will focus on growth-stage companies and Saudi brands, as well as projects that use new technology and business models across apparel, accessories, supply chain enablers, e-commerce and beauty, it added.
The fund aims to position Saudi Arabia as a hub for talent and innovation, "enabling Saudi brands to expand regionally and globally, in line with the ambitions of Vision 2030", said Abdullah Altamami, founder and chief executive of Merak Capital.
The establishment of the Fashion Fund is also aimed at building a sustainable and competitive Saudi fashion industry, said Majed Alhugail, chief executive of the Cultural Development Fund.
"Through our strategic partnerships with the private sector, we are laying the foundations for growth, innovation and global market access, while empowering enterprises and fashion entrepreneurs to maximise their economic and social impact."
Saudi Arabia continues to diversify its economy beyond oil, tapping into numerous sectors that align with its Vision 2030 economic programme.
Fashion is a growing sector in the country, with the Arab world's largest economy establishing the Fashion Commission under the Ministry of Culture to support and promote the industry.
Overall, the kingdom is poised for significant growth in the fashion and luxury market, which is expected to hit $42 billion by 2028, from $30 billion in 2023, data from industry tracker Fashion Futures indicates.
"We are confident that this fund will be a powerful enabler for Saudi talent and a platform for showcasing cultural identity," Mr Altamami said.
"Its impact will extend across the ecosystem – from beauty and e-commerce to innovative design – opening new opportunities for entrepreneurs and reinforcing the kingdom’s position as a global centre for creative industries.”
