Saudi fashion brands have secured private equity funding at a roadshow in New York.
With retail fashion sales expected to hit $32bn by 2025 and Riyadh to host its own fashion week event this month, the sector is booming.
With further growth fuelled by the Kingdom’s economic expansion and growing population, the apparel, accessories, footwear and luxury goods markets are poised for significant gains.
Saudi fashion funding
Investors and fashion stakeholders met in New York City this week at a roadshow hosted by the Saudi Fashion Commission (SFC).
Designed as a platform to discuss the Kingdom’s rapidly growing fashion ecosystem and opportunities to invest, the roadshow saw the announcement of strategic partnerships facilitated by the Fashion Commission.
The event saw newly minted agreements, including investments into two brands by leading consumer-focused private equity firm, Turmeric Capital: elevated streetwear brand 1886 and ethical luxury label, Abadia.
The first-of-its-kind involvement in the Kingdom’s fashion brands by an international investor will see 1886 and Abadia’s founders supported by cash incentives from Turmeric Capital and matching support in services from the Fashion Commission.
The collaborations between Turmeric Capital and the two brands are complemented by a Memorandum of Understanding between the private equity firm and the Fashion Commission.
Burak Cakmak, CEO of the SFC, said: “From Paris to Milan, to New York, the Saudi Fashion Commission is traversing the globe to support the Saudi fashion sector as it grows and supports diversification of the Saudi economy.
“The return to New York this year is an incredible moment where we are witnessing key milestones – for Saudi brands as we help them secure international investment, for the Commission as we continue to put our mark on the global stage and for the Saudi fashion industry as public awareness grows.”
Ravi Thakran, Chairman of Turmeric Capital, said: “I am very proud of our collaboration with the Saudi Fashion Commission. With our complementary skill sets, we are contributing to the Saudi fashion eco-system and working towards the objectives of Vision 2030.
“There is no better way to do this than by backing future Saudi entrepreneurs.
“The momentum I see in Saudi Arabia today is very similar to what I noticed in China when working there with LVMH from the early 2000s.
“A decade from now, I believe books will be written about the colossal changes as Saudi increases its economic presence across Asia.”
The roadshow’s day-long agenda included keynote presentations by Princess Reema bint Bandar Al Saud, Ambassador to the United States, panel sessions attended by the likes of Jeffry Aronsson, Founder and CEO, Aronsson Group and Huda Al Lawati, Founder and CEO, Aliph Capital and Karla Martin, US Fashion and Sustainability Lead, Deloitte.
Bringing together global fashion investors and luxury goods companies, clothing designers, and sustainable manufacturing experts, the commission sought to build on and accelerate the progress made in attracting foreign investment to the sector.
KSA’s fashion currently industry holds the largest projected growth rates of any other large, high-income market, according to the “State of Fashion in the Kingdom of Saudi Arabia (2023)” report.
From 2021 to 2025, retail fashion sales in the Kingdom are expected to surge 48 per cent to $32bn, representing an annual growth rate of 13 per cent.
The value of luxury fashion purchases in the GCC hit $9.6bn in 2021, with Saudi Arabia posting 19 per cent growth.
The Fashion Commission departs New York with Riyadh Fashion Week due to take place October 20 to 23 .
The inaugural event will exclusively focus on showcasing domestic talent, setting a new precedent in fashion while celebrating local creatives and sustainable craftsmanship.
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