Saudi Arabia’s fashion sector is booming, with a value of $24.6bn, with more than half coming from the local sector, according to a new report.
The Small and Medium Enterprises General Authority (Monsha’at) released its report for the first quarter of 2024, shining a spotlight on the Kingdom’s thriving fashion sector and the wealth of investment potential for entrepreneurs.
The report reveals a fashion industry valued at a staggering SR92.3bn ($24.6bn), with the local segment contributing SR46.9bn ($12.5bn).
Saudi fashion market
Consumer spending on imported brands reached SR27.4bn ($7.3bn), highlighting a significant market for domestic brands to capture.
This robust growth trajectory is further emphasised by the projected 48 per cent cumulative increase in the fashion sector’s value between 2021 and 2025.
There is much room for optimism regarding the future of Saudi fashion. Fashion Commission CEO Burak Cakmak predicts continued progress and prosperity driven by the talent of local designers and the innovative vision of entrepreneurs.
He emphasises the potential for Saudi Arabia to leave a lasting mark on the global fashion scene.
The report also highlights the Kingdom’s leadership in venture capital investments. According to MAGNiTT (the number one source of analytics, data and insights covering startups, investors and funds in Middle East, Africa, Pakistan and Türkiye) CEO Philip Bahoshy, the first quarter of 2024 saw a remarkable SR900m ($240m) invested in startups.
This figure solidifies Saudi Arabia’s position as MENA region’s leader in venture capital investments, holding a commanding 65 per cent market share.
Monsha’at’s report further showcases the success stories of entrepreneurs like Princess Deemah bint Mansour bin Saud bin Abdulaziz, the founder of fashion concept store “Personage”, Mohammed Khoja, the creative force behind ready-to-wear Saudi luxury label “Hindamme”, and Kamal Hubaishi, founder and managing partner of streetwear Urbn Lot, which all pave the way for future generations of Saudi fashion entrepreneurs.
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