Saudi Arabia’s Fashion Fund has been reintroduced as ZYA Fund, a move that positions the vehicle as the Kingdom’s first private equity fund focused exclusively on the fashion industry. The rebranding comes as Saudi Arabia continues to expand investment across its cultural and creative sectors, with policymakers and financial institutions seeking to translate national strategy into commercially viable platforms. Backed by a partnership between the Cultural Development Fund and Merak Capital, the newly named fund is intended to support the next phase of growth for fashion businesses operating across the country.
Governance and Leadership
The launch of ZYA Fund was accompanied by the first meeting of its board of directors, bringing together senior figures from government, investment, and the broader fashion ecosystem. The board is chaired by Hamed Fayez, Vice Minister of Culture and Vice Chairman of the Fashion Commission, while Majed Alhugail, chief executive of the Cultural Development Fund, serves as vice chairman. Other members include Merak Capital founder and chief executive Abdullah Altamami, Fashion Commission chief executive Burak Cakmak, and Turmeric Capital chairman and chief executive Ravi Thakran, underscoring the blend of local institutional support and international sector expertise behind the initiative.
Investment Scope and Market Ambition
With a total investment size of SAR300 million, the fund is structured to deploy capital across multiple segments of the fashion value chain rather than focusing narrowly on labels or retail businesses alone. Its mandate extends from apparel and accessories design to production, logistics, supply chains, digital commerce, and beauty, reflecting a broad interpretation of what constitutes the modern fashion economy. This model is designed to help Saudi brands and related businesses strengthen their operating foundations, expand regionally, and improve their ability to compete in global markets.
Building a Fashion Ecosystem
Merak Capital, which will manage the fund, has framed ZYA Fund as a platform for channeling financing into promising companies that can contribute to a more robust industry structure in Saudi Arabia. The strategy suggests that the objective is not only to back individual businesses, but also to help create the commercial infrastructure required for a more sustainable fashion market. By supporting different layers of the sector, the fund aims to foster a connected ecosystem in which creative talent, manufacturing capacity, distribution networks, and digital channels develop in tandem.
Alignment With National Policy
The creation of ZYA Fund also reflects a broader policy effort to position fashion as an investable creative industry under Saudi Vision 2030 and the National Culture Strategy. Saudi institutions have increasingly emphasized the role of culture not only as a soft-power asset, but also as an economic driver capable of generating jobs, entrepreneurship, and export potential. In that context, the fund’s launch represents a financial instrument tied directly to national diversification goals, with fashion being treated as part of a larger shift toward non-oil growth sectors.
Role of the Institutional Partners
The Cultural Development Fund’s role as anchor investor is central to the structure, with the institution holding a 40 percent stake in the fund and reinforcing its position as a catalyst for private sector participation in cultural industries. The CDF has increasingly positioned itself as both a financing enabler and an ecosystem builder, offering support mechanisms intended to improve the readiness and long-term sustainability of cultural enterprises. Merak Capital, for its part, brings experience as a Saudi-based multi-strategy investment firm managing more than SAR3 billion across a range of vehicles, giving ZYA Fund an operational base grounded in private equity and growth-oriented investment management.
The launch of ZYA Fund marks more than a name change, as it signals a deliberate effort to institutionalize fashion investment within Saudi Arabia’s evolving creative economy. By combining public-sector backing, private-sector fund management, and sector-specific leadership, the initiative is designed to support a pipeline of companies capable of scaling beyond the domestic market. As Saudi Arabia continues to build out cultural industries as part of its economic transformation agenda, ZYA Fund is emerging as a notable test case for how targeted capital can shape an entire sector’s development.