Saudi Arabia’s fashion brands 1886 and Abadia have secured private equity funding at an investment roadshow hosted by the Saudi Fashion Commission in New York City on Tuesday.
The agreement will see the brands’ founders supported by cash incentives from Turmeric Capital and matching support in services from the Fashion Commission.
The collaboration was also complemented by a memorandum of understanding inked between the firm and the fashion, which aims to encourage both organisations to enable the development of globally competitive brands rooted in Saudi culture.
CEO of the Saudi Fashion Commission, Burak Cakmak, said in a statement: “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.”
The investment comes as Riyadh is poised to host its own fashion week event, scheduled to take place on October 20- 23 .
Chairman of Turmeric Capital, Ravi Thakran, 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 ecosystem 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.”
Retail fashion sales in the country are forecast to surge 48 per cent to $32 billion, growing an annual growth rate of 13 per cent between 2021 to 2025.