Saudi Arabia Launches €68 Million Fund to Boost National Fashion Industry

Saudi Arabia invests in its fashion industry. The Ministry of Culture has announced the launch of an investment fund endowed with 300 million Saudi rials (more than $79 million) managed by the investment firm Merak Capital, whose main investor will be the country’s cultural development fund.

The initiative will finance fashion brands and innovative projects with high growth potential, as well as develop local supply chains, BoF said Wednesday. The country is confident of its potential to expand internationally and take its local design to global markets.

In 2020, the ministry established the Saudi Fashion Commission , which aims to develop and support the industry in the country. The organization is led by Burak Cakmak, former dean of fashion at Parsons School of Design in New York.

Saudi Arabia to finance clothing brands and projects with growth potential

The Saudi Fashion Commission has already launched several initiatives such as the Fashion Futures conference and Saudi 100 Brands, an incubation program to mentor local designers and brands, as well as promote them globally.

The Ministry has also introduced a joint loan program worth more than 1 billion Saudi rials ($266 million) aimed at expanding access to financing for cultural businesses and entrepreneurs in general, or just in the fashion field.

For its part, The Cultural Assets Group, Saudi Arabia’s largest private cultural and creative company, simultaneously launched a fund of 850 million Saudi rials ($226.4 million) to invest in various fields, including fashion retail.

Since the creation of the Saudi Fashion Commission in 2020, under the umbrella of the Saudi Ministry of Culture, the country has intensified its efforts to make local designers visible at events such as Dubai, Milan and New York.

Last year, the Saudi Fashion Commission released a report in which it valued its fashion industry at $30 billion in 2023, and forecast growth to reach $42 billion by 2028, with a contribution to the country’s GDP of 2.5%.