• Saudi’s Cultural Development Fund and Merak Capital launched an USD 80M private equity fund focused on fashion sector growth.
• The fund targets apparel, accessories, e-commerce, beauty, and supply chain enablers, prioritizing Saudi brands and innovative growth-stage companies.
• The initiative supports Vision 2030 goals by strengthening cultural industries, promoting innovation, and enabling Saudi businesses to compete globally.

Merak Capital

Saudi’s Cultural Development Fund signed an agreement with Merak Capital, an investment firm, to establish a private equity fund dedicated to the fashion sector, with a total value of USD 80 million (SAR 300M).

“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.

The fund will be under the management of Merak Capital, with the Cultural Development Fund serving as an anchor investor. It seeks to invest across the fashion value chain, from apparel and accessories to supply chain enablers, e-commerce, and beauty. Furthermore, it will focus on growth-stage companies and Saudi brands with proven traction and ambitious expansion plan. It will also focus on innovative projects that harness technology and new business models to drive competitiveness.

Fashion Fund

The announcement of the Private Equity Fashion Fund came as part of the Cultural Investment Conference organized by the Ministry of Culture. It is an international conference aiming to highlight culture as both an economic driver and an attractive investment sector. Furthermore, it aims to support the growth of cultural industries and expand their investment opportunities. 

The establishment of this fund aims to reinforce the Cultural Development Fund’s role as a financial enabler for the cultural sector. It introduces financing and enablement solutions that amplify the sector’s economic and social impact. Moreover, Merak Capital aims to reinforce its commitment to supporting sectors of national importance. 

Both of these missions are in alignment with the National Culture Strategy and Saudi Vision 2030. This is due to its contribution to promoting innovation and opening new horizons for Saudi talent and businesses to compete globally.