ZYA fund targets growth-stage Saudi fashion brands

The Kingdom’s first fashion-dedicated PE fund, ZYA, is targeting growth-stage Saudi brands with the capital and commercial support to go regional and international, Merak Capital Principal Abdulaziz Alsaid tells EnterpriseAM.

REMEMBER- ZYA was launched in April by Merak Capital and the Cultural Development Fund, with a total investment size of SAR 300 mn to help attract capital into Saudi Arabia’s fashion sector.

The investment thesis: ZYA is not an import-substitution play. “The goal is not simply to reduce imports. It is to increase the share of value created by Saudi brands within a market that will continue to welcome leading international names,” Alsaid says. Saudi fashion and beauty already contribute 2.6% of GDP, he tells us, and the market is projected to reach USD 36.8 bn by 2025, the largest in the Gulf, growing at a compound annual rate of 6.4% through 2029, according to the latest Saudi State of Fashion report. The fund’s job is to ensure Saudi brands capture a bigger slice of that, not to lock anyone out.

What ZYA actually does: The fund backs established Saudi brands with the capital, strategic guidance, and market access to move from domestic traction to regional and international growth. Beyond capital, every investment comes with hands-on mentorship, commercial partnerships, and collaboration across the ecosystem, Alsaid says. The fund is also working with the Saudi Fashion Commission to establish fashion as an investable asset class that can attract wider institutional capital.

The funding Saudi fashion lacked: The Kingdom has “distinctive design talent” and a large young consumer base, but needed institutional growth capital, Alsaid says. ZYA intends to supply that, along with the corporate infrastructure, to carry domestic brands beyond the home market.

Who qualifies: Growth-stage companies with “consistent revenue growth, a resilient customer base, strong brand positioning, disciplined operations, and a credible path to profitability,” Alsaid says.

The supply chain question: Manufacturing depth, logistics, and supply chain capability remain real constraints. Alsaid's view is that they are “best addressed through demand-led growth.” As local brands scale and build healthier balance sheets, their volume justifies deeper investment in local production and more efficient supply networks.

Some brands are already moving. JAY3LLE had announced plans to enter New York, London, and East Asia through pop-up stores, followed by permanent retail locations in March.