Merak Capital has signed an agreement with the Cultural Development Fund to establish the Kingdom’s first private equity fund focused on the fashion sector, with a size of $80 million (SAR 300 million), at the Cultural Investment Conference.
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, eCommerce, and beauty.
The private equity fund’s 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.
“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.
This step reflects Merak Capital’s commitment to supporting strategic sectors of national importance, in alignment with the National Culture Strategy and Saudi Vision 2030, by promoting innovation and opening new horizons for Saudi talent and businesses to compete on the global stage.
With Saudi Arabia’s fashion market valued at over $26.6 billion (SAR 100 billion), the fund will invest across the ecosystem, from apparel and accessories to eCommerce & beauty, and supply chain enablers. Our focus is on growth-stage businesses and disruptive Saudi brands with the ambition to expand regionally and globally.
