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On Tuesday 17 September, Vogue Business partnered with the Saudi Fashion Commission to host an event during London Fashion Week, focusing on the future of fashion and the investment opportunities available in the Kingdom of Saudi Arabia. The event explored the government’s support for international brands looking to enter this high-growth luxury market.
The morning included two roundtable discussions featuring prominent speakers from the Saudi government, including senior executives from the Ministry of Culture’s Fashion Commission, the Ministry of Investment (MISA), the Cultural Development Fund (CDF), as well as the British Fashion Council and top executives from various international brands making headway into Saudi’s burgeoning retail sector. Alongside these discussions, the second edition of the data-led ‘State of Fashion Sector in Saudi Arabia 2024’ report was released by the Fashion Commission, while MISA conducted a workshop detailing how the Saudi government is supporting companies interested in making direct investment in the country. This invite-only event brought together international executives from the retail, technology and investment sectors, as well as Saudi creative-business founders and high-level government officials.
Burak Cakmak, CEO of the Saudi Fashion Commission, part of the Kingdom of Saudi Arabia’s Ministry of Culture, opened the event, saying, “I’m quite excited to see the evolution we are witnessing with the work we are doing as a Fashion Commission. Since 2021, we have been implementing our strategy to build a fashion sector in a greenfield economy.”
The first roundtable discussion, titled ‘Governmental incentives and investment opportunities in Saudi Arabia’, was moderated by Vogue Business contributing editor Sujata Assomull. The panel featured Abdulaziz Alghifaili, UK office director of MISA; Najla AlNomair, chief strategy and business development officer of the Cultural Development Fund (CDF); Ammar Bogari, general manager of strategy and business development at the Saudi Fashion Commission; and Caroline Rush, CEO of the British Fashion Council.
Bogari highlighted the Fashion Commission’s ‘Saudi 100 Brands’ initiative, which supports and promotes 100 emerging and established Saudi designers with the goal of taking them international. The project has seen success with local labels such as Abadia and The Dropped Collection entering Paris department store Galeries Lafayette. He believes that international retail should be looking to Saudi creatives who offer a fresh point of view. Alghifaili and AlNomair discussed how the Saudi government is ensuring that the process is as smooth as possible for international retail brands looking to enter the Saudi market. Alghifaili noted: “If you look at the historical trends in Saudi, the market was predominantly accessed through franchises or working with large retailers. Now, this trend has shifted, and we welcome international brands to establish in Saudi Arabia by themselves. The opportunity is there for them to set up an office, support their sales, or establish a distribution centre in one of the zones. We welcome all international brands to set up in Saudi Arabia.”
AlNomair, meanwhile, explained how “cultural financing is a financial product that offers solutions to all the cultural sector’s creative industries. Fashion, in particular, is a sector of interest to us.” She highlighted how the CDF provides tailored financial solutions for creative industries and urged international brands to connect with MISA to understand market regulations, while the Fashion Commission offers insights into the fashion sector’s dynamics, supply and demand. The British Fashion Council’s Rush, who has visited Saudi capital Riyadh multiple times, commented on the diverse range of talent and its rapid growth in retail, tourism and hospitality. She urged international brands to discover the market and understand the discerning Saudi consumer, while flagging that collaboration is key — as is understanding the culture. AlNomair summed up the conversation, saying: “We are a young nation, with 60 per cent of our population under 30. This generation, raised on the internet, is eager to express themselves. Fashion is not just about dressing or designing; it’s a way to proudly showcase who we are and what we believe in. It’s an open invitation to co-create with us and learn from our culture.”
The second roundtable, also moderated by Assomull, focused on the future of retail and fashion in the Kingdom. The panel featured Mytheresa CEO Michael Kliger, Eyad Mashat, CEO of FAD International (owner of Femi9), Pierre Denis, co-founder of Lift Fund, and Bilal Fares, SVP and general manager of adidas’s EMC market.
Kliger set the tone of the discussion: “The Middle East, particularly Saudi Arabia, is currently the most interesting and fastest-growing market for us, even ahead of the US. We’ve had Saudi clients for many years, whether in London or Paris, because they’re well-travelled and have always had a strong connection to luxury. Now, as they spend more time domestically, they want the same luxury experience at home. Our teams have been working in Riyadh and Jeddah, and we’re excited to host more events there.”
adidas is one of the first brands to directly enter the region, with Fares reflecting on how Vision 2030 (the government’s development programme) reshaped the company’s approach to the Saudi market. “We started looking at adidas and Saudi differently in 2020. Before that, we used distributors and franchise partners, but with Vision 2030, we saw a clear opportunity and invested in a subsidiary. Last October, we officially launched our subsidiary in Saudi,” he said. adidas has integrated into the local calendar with special initiatives such as a modestwear collection, Ramadan capsules and partnerships with leading local athletes and creatives. They will also take part in Riyadh Fashion Week this October, with full details on the activation to be announced shortly.
Femi9 CEO Mashat, the Saudi online clothing brand that was founded in 1999 and now has 55 stores across the region, spoke about understanding the wardrobing needs of Saudi women and how international brands must approach the market with an open mind. Denis added that, despite the market’s young, digitally savvy demographic, bricks-and-mortar stores remain vital. “Shops are the defining moment of the experience,” he said. “After Covid, everyone returned to stores for a real, concrete experience.”
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Kliger concluded by reminding international brands to be respectful of the Saudi market. “You cannot imagine how educated and sophisticated the consumers are. This is not like Shanghai 20 years ago. The Saudi customer base knows Paris, Milan and London — and has amazing taste.”
The second half of the event featured two key presentations. ‘State of Fashion Sector in Saudi Arabia 2024’, an annual publication by the Fashion Commission, now in its second year, was unveiled by Layla Alabdrabalnabi, the Fashion Commission’s head of research and innovation. Among the key findings was that the Saudi fashion industry makes up 2.5 per cent of Saudi Arabia’s total GDP, in 2024. The report also places the region at the forefront of the Gulf Cooperation Council (GCC) fashion and luxury market, which is valued at $80 billion, with Saudi Arabia accounting for over 40 per cent of that total. It is also witnessing a transformative retail expansion. Of the 20 projects currently in the works, Riyadh and Jeddah are the primary beneficiaries. And while most of these projects will cater to the mass to mid-market segment, there are selected projects focusing on high-end and luxury retail.
MISA’s Alghifaili returned to the stage to give a presentation on why retail should invest in the region. He began by highlighting Saudi Arabia’s major growth targets under Vision 2030, noting that the country is currently the 17th largest economy in the world and the largest in the MENA (Middle East and North Africa). With low unemployment rates and high levels of home ownership, the economy is thriving, with non-oil revenue on the rise. Alghifaili emphasised that Saudi Arabia allows full foreign ownership across most sectors, including healthcare, education, engineering, defence, retail, wholesale, land transportation, real estate brokerage, publishing, audiovisual and metals.
Alghifaili also underscored Saudi Arabia’s strategic location and its numerous giga and mega projects — designed to create new ecosystems and boost the economy across various sectors — in development. Tourism, in particular, is a key area of interest, with landmark projects like the Red Sea project, an ultra-luxury resort destination, and Amaala, which aims to be the ‘Riviera of the Middle East’. Additionally, he mentioned the Diriyah Gate Development and Al-Ula, both of which are heritage sites and have already caught the attention of the global luxury travel consumer. The State of Fashion report detailed how this tourism base will accelerate the demand and growth for retail, as tourism-related developments aim to attract over 150 million visits by 2030, with Diriyah expected to be the standout destination for retail tourism.
Saudi Arabia also offers several special economic zones, each strategically located to facilitate entry into both the Saudi and global markets. Companies that establish regional headquarters will benefit from many incentives, including visa support and comprehensive business services. Alghifaili concluded his presentation by saying: “We are investing to make your journey beneficial.”
This event showcased Saudi Arabia’s growing prominence on the global fashion stage, offering opportunities for international brands to enter a market that is both discerning and dynamic. The morning closed with a networking session whereby many delegates stayed until the early afternoon to discuss and learn about the Saudi opportunity.
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