Saudi Arabia’s Cultural Development Fund has signed an agreement with investment firm Merak Capital to create a private equity fund for the fashion industry, worth USD 80 million (SAR 300 million).
Merak Capital will manage the new private equity fund, with the Cultural Development Fund acting as the main investor.
The fund will invest in all areas of the fashion industry, including clothing, accessories, supply chain solutions, e-commerce, and beauty. It will focus on growth-stage companies and Saudi brands that have demonstrated success and plan to expand, as well as innovative projects that utilize technology and new business models to remain competitive.
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 launch of the Private Equity Fashion Fund was announced at the Cultural Investment Conference organized by the Ministry of Culture. The conference brings together international participants to demonstrate how culture can drive economic growth and attract investment.
It also aims to help cultural industries grow and create more investment opportunities in the sector.
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.”
This move demonstrates Merak Capital’s commitment to supporting key sectors crucial to the country. It aligns with the National Culture Strategy and Saudi Vision 2030, promoting innovation and giving Saudi talent and businesses new opportunities to compete globally.
Merak Capital is an investment firm that focuses on technology opportunities across different stages and industries. The firm uses deep research and knowledge of technology to stay ahead of digital trends and identify investment opportunities in various sectors, both locally and globally.
Merak Capital aims to partner with innovators driving technological change, opening new markets and growth opportunities. Its goal is to support innovation and entrepreneurship to shape the future.
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