Saudi Arabia’s Cultural Development Fund has partnered with investment firm Merak Capital to launch a private equity fund valued at SAR 300 million ($80 million), dedicated to bolstering the nation’s fashion sector. The initiative was announced during the Cultural Investment Conference organized by the Ministry of Culture, aiming to position culture as a key economic driver and an attractive investment area.
Strategic Investment Across The Fashion Value Chain
The newly established fund will be managed by Merak Capital, with the Cultural Development Fund serving as an anchor investor. Its investment strategy spans the entire fashion value chain, targeting companies in apparel, accessories, e-commerce, beauty, and supply chain enablement. The primary focus will be on growth-stage companies and established Saudi brands that have demonstrated significant traction and possess ambitious plans for expansion. A key objective is to back innovative projects that leverage technology and new business models to enhance their competitive edge.
Aligning With National Culture Strategy And Vision 2030
The launch of the fashion fund is a direct contribution to the goals outlined in the National Culture Strategy and Saudi Vision 2030. By providing targeted financial support, the initiative aims to build a sustainable and competitive local fashion industry, promote innovation, and create new opportunities for Saudi talent and businesses to compete on a global stage. This reinforces the vision of developing robust cultural industries that contribute significantly to the national economy.
A Partnership To Enable Cultural Industries
This collaboration strengthens the Cultural Development Fund’s mandate as a key financial enabler for the cultural sector, introducing specialized financing solutions to amplify the industry’s economic and social impact. For Merak Capital, it underscores a commitment to investing in sectors of national strategic importance.
“The establishment of the Fashion Fund marks a pivotal step toward building a sustainable and competitive Saudi fashion industry in this dynamic sector,” said Majed Abdulmohsen Alhugail, CEO of the Cultural Development Fund.
About Merak Capital
Merak Capital is a Saudi-based investment firm focused on supporting and investing in sectors of national importance. As the manager of the new SAR 300 million Fashion Private Equity Fund, the firm is dedicated to fostering growth and innovation within Saudi Arabia’s burgeoning fashion industry in alignment with Vision 2030.
About The Cultural Development Fund
The Cultural Development Fund is a Saudi governmental entity responsible for financially enabling the cultural sector. By acting as an anchor investor and partnering with private sector firms, it aims to introduce sustainable financing and enablement solutions that enhance the economic and social contributions of cultural industries across the Kingdom.
Source: Waya
