Saudi Arabia is giving its fashion sector a financial boost.
At a conference in Riyadh this week, the Saudi Ministry of Culture announced the launch of a trio of investment funds to support and empower the country’s cultural and creative sectors, including the Kingdom’s first fund dedicated to the fashion industry.
The SAR 300 million ($80 million) fashion fund will be managed by Merak Capital, with the country’s Cultural Development Fund serving as an anchor investor. The initiative will channel financing into fashion brands and innovative projects with high-growth potential, as well as the development of local supply chains.
The new fund aligns with a broader strategic bet by the country that Saudi fashion has the potential to scale internationally and bring local design to global markets. In 2020, under the leadership of Princess Noura bint Faisal Al Saud, the Saudi Ministry of Culture established The Fashion Commission, aimed at developing and supporting the country’s fashion sector. The organisation is now led by chief executive Burak Cakmak, former dean of fashion at New York’s Parsons School of Design, who was appointed in 2022.
The Fashion Commission notably launched flagship initiatives such as the Fashion Futures conference and the Saudi 100 Brands, an incubator programme to support and mentor local designers and brands, as well as promote them globally, a platform that has garnered international recognition.
Along with its new fashion fund, the CDF also introduced a co-lending programme worth over SAR 1 billion, in partnership with local financial institutions aimed at expanding access to funding for cultural enterprises and entrepreneurs.
The Cultural Assets Group, the kingdom’s largest privately owned cultural and creative enterprise, simultaneously launched an SAR 850 million fund, with one-quarter financed by the CDF, to invest in diverse fields from visual arts to fashion retail.
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