Saudi Arabia's Cultural Development Fund signed an agreement with Merak Capital to establish the Kingdom’s first private equity fund dedicated to the fashion sector, with a total value of SAR300 million ($80 million).
The new private equity fund will be managed by Merak Capital, with the Cultural Development Fund serving as an anchor investor. The fund will invest across the fashion value chain, from apparel and accessories to supply chain enablers, e-commerce, and beauty. Its focus will be on growth-stage companies and Saudi brands with proven traction and ambitious expansion plans, as well as innovative projects that harness technology and new business models to drive competitiveness.
Majed Abdulmohsen Alhugail, CEO of the Cultural Development Fund, added: “The establishment of the Fashion Fund marks a pivotal step toward building a sustainable and competitive Saudi fashion industry in this dynamic sector. 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 maximize their economic and social impact. This fund extends the Cultural Development Fund’s approach to advancing the creative industries and solidifying their role as key drivers of employment, investment, and the national economy, in alignment with the objectives of Vision 2030."
The establishment of this fund underscores the Cultural Development Fund’s role as a center of excellence and financial enabler for the cultural sector, introducing innovative financing and enablement solutions that amplify the sector’s economic and social impact, in alignment with the National Culture Strategy and Saudi Vision 2030.
Abdullah Altamami, Founder &CEO of Merak Capital, commented: “The establishment of the first private equity fund in the fashion sector marks a pivotal milestone in advancing the Kingdom’s creative industries and positioning Saudi Arabia as a hub for talent and innovation. Our partnership with the Cultural Development Fund reflects Merak Capital’s commitment to supporting national projects and enabling Saudi brands to expand regionally and globally, in line with the ambitions of Vision 2030."
He added: "We are confident that this fund will be a powerful enabler for Saudi talent and a platform for showcasing cultural identity. 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 center for creative industries.” -TradeArabia News Service
