Saudi Arabia’s fashion sector has a new major investor with the launch of ZYA Fund, a SAR 300 million private equity fund dedicated to the industry. The initiative, formerly known as The Fashion Fund, is a partnership between the Cultural Development Fund (CDF) and Merak Capital, signaling a significant push to grow local brands and build a robust fashion ecosystem in the Kingdom.
Quick Facts
- SAR 300 million total fund size.
- Saudi Arabia’s first dedicated fashion fund.
- Backed by CDF and Merak Capital.
Powering the Kingdom’s Fashion Ecosystem
ZYA Fund is structured to inject capital across the entire fashion value chain. With a SAR 300 million war chest, the fund is anchored by a 40% stake from the Cultural Development Fund, while Merak Capital will serve as the fund manager.
The fund’s creation is a key move in the Kingdom’s strategy to build an integrated fashion industry and position it as a high-potential investment area, in line with the National Culture Strategy under Saudi Vision 2030.
Strategic Leadership
The fund’s inaugural Board of Directors meeting brought together influential figures from culture, fashion, and investment. The board is chaired by H.E. Hamed Fayez, Vice Minister of Culture, with Majed Alhugail, CEO of the Cultural Development Fund, as Vice Chairman.
Other members include Abdullah Altamami, Founder and CEO of Merak Capital; Burak Cakmak, CEO of the Fashion Commission; and Ravi Thakran, Chairman and CEO of Turmeric Capital.
Abdullah Altamami, Founder and CEO of Merak Capital, commented on the launch.
“Through ZYA Fund, we are creating a platform to channel capital into high-potential opportunities across the fashion value chain. Our focus is on backing ambitious Saudi brands and businesses with the capability to scale regionally and globally, while contributing to the development of a more structured and resilient fashion ecosystem in the Kingdom.”
Investing Across the Value Chain
ZYA Fund will not limit its investments to apparel design. Its mandate includes deploying capital into production, accessories, supply chains, e-commerce platforms, and beauty startups. The core objective is to provide Saudi brands with the financial backing needed to scale their operations both within the region and on a global stage.
About ZYA Fund
ZYA Fund is Saudi Arabia’s first private equity fund focused exclusively on the fashion sector. A partnership between the Cultural Development Fund and Merak Capital, the SAR 300 million fund aims to invest across the fashion value chain to scale promising Saudi brands regionally and internationally.
About the Cultural Development Fund
The Cultural Development Fund (CDF) is the financial enabler for Saudi Arabia’s cultural sector. It offers integrated financing, investment, and advisory solutions to empower cultural enterprises, strengthen private sector participation, and enhance the sector’s long-term sustainability in alignment with Saudi Vision 2030.
About Merak Capital
Merak Capital is a Saudi-based multi-strategy investment firm licensed by the Capital Market Authority. The firm manages over SAR 3 billion across 10 funds spanning venture capital, private equity, and credit financing. Merak partners with visionary founders and enterprises to drive transformation and enable sustainable growth.
Source: Zawya
