Saudi Arabia is accelerating the growth of its fashion industry with the launch of the Kingdom’s first private fashion investment fund, established through a partnership between the Saudi Cultural Fund and Merak Capital.
The newly launched fund is valued at approximately SR300 million and is designed to support the entire fashion value chain, including clothing, footwear, accessories, jewelry, perfumes, cosmetics, supply chain development, and e-commerce expansion.
The initiative aims to empower ambitious Saudi brands by providing institutional investment that enables them to scale regionally and internationally while strengthening their competitiveness in global markets.
According to officials, the Cultural Fund holds a 40 percent stake in the new investment platform “ZYA,” highlighting its role as a key strategic investor in building a sustainable ecosystem for Saudi fashion businesses.
Beyond direct financing, the fund also seeks to strengthen the operational and financial structures of supported companies, helping prepare promising brands for larger expansion phases and potential future listings on financial markets.
The launch comes as Saudi Arabia’s fashion sector continues to experience rapid growth. Recent reports estimate the industry’s contribution to the national economy at approximately $33.6 billion in 2025, compared to $27.2 billion the previous year.
The sector also generated around 343,000 jobs in 2024, with Saudi women representing more than half of the workforce, reflecting the industry’s growing role in economic and social empowerment.
At the same time, digital transformation has significantly boosted online fashion sales, with electronic transactions through the Mada payment network rising from $2.75 billion in 2019 to nearly $53 billion in 2024.
Industry observers believe the “ZYA” fund represents far more than a financial vehicle. It is viewed as a strategic step toward reshaping Saudi Arabia’s fashion landscape and positioning the Kingdom as a major regional and international hub for creativity, innovation, and fashion entrepreneurship.
