Saudi Arabia Plans to Develop Domestic Fashion Manufacturing Sector
In its first “State of Fashion in Saudi Arabia” report, the Saudi Fashion Commission has laid out a vision to develop a full fashion ecosystem in the next 10 years, with a shift toward more local product development and manufacturing as a key pillar for the sector’s growth. Can “Made in Saudi Arabia” sell? The commission is betting big that it will.
Saudi Arabia imports more than $7 billion of fashion products annually, according to data provided by the fashion commission. Manufacturing “even just a small fraction of this amount” would open significant opportunities for the local value chain, explained Burak Çakmak, chief executive officer of the commission.
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Çakmak, who previously was the dean of fashion at Parsons School of Design in New York, leads the Saudi Fashion Commission, tasked with enabling the development of the industry.
“We need to develop the technical back end of the industry as the retail front-end grows. That includes everything from what material we produce here and how much of it is circular and sustainable, to what products we design, develop and even manufacture here,” said Çakmak.
The kingdom’s bid to rapidly scale up capabilities in the next decade represents an opportunity for manufacturers, logistics providers and specialist machinery suppliers globally. Bringing back even 20 percent of fashion imports could generate additional local manufacturing sales of $1.3 billion, according to the report. The commission is courting foreign direct investors to support this growing consumer demand. Fashion, an integral element of Saudi Arabia’s cultural economy, is part of controversial Saudi Crown Prince Mohammed bin Salman Al Saud’s ambitious Vision 2030 plan aimed at diversifying the economy away from petroleum.
“We are starting from scratch in creating this,” Çakmak told WWD. “While that has its challenges, it also is an opportunity. A real advantage that the Saudi fashion sector has, being so new, is that we have a chance to do things differently and be more sustainable.”
The lack of any large-scale legacy manufacturing operations, combined with young, tech-savvy designers, is the ideal environment for advanced technology adoption. “We are investing in innovation in a big way in the kingdom. Key focus areas for us are sustainable material solutions, from recycled materials to other alternative products,” he said.
The fashion commission is going deep into advanced materials science, leveraging the kingdom’s expertise in the global petrochemicals sector to create parallel opportunities for synthetic fibers and associated yarn and fabric production, as well as dyeing and printing operations. They are supporting the setup of a sustainable materials research center at King Abdulaziz University’s Science and Technology Center. The long-term goal, said Çakmak, is to make more sustainable materials not just for the benefit of Saudi Arabia but potentially for the rest of the world.
Regionally made fashion could account for up to 30 percent of the ready-to-wear fashion market by 2025, according to the report. Modest wear continues to be a key driver within the regional fashion industry. “The vision is to ideate, create and develop a full array of fashion products in Saudi Arabia,” Çakmak said.
Already, a first-of-its-kind product development studio will open by the end of 2023 in Riyadh. Supported by the commission, the space is equipped with the latest cutting-edge technology, including 3D knitting and laser-cutting machines. The production space will enable designers to produce prototypes and samples to speed up market entry.
“Designers have not been able to access the full fashion value chain — meaning there has been little opportunity to turn creativity into actual fashion products,” said Çakmak. “Quick response manufacturing would serve the local burgeoning design scene who struggle with manufacturing given long production lead times and large minimum purchase orders for factories in Europe and China.”
Manufacturing will offer local consumers the right mix of quality, agility and price to make them less dependent on international imports and more eager to purchase locally made garments. The commission is also setting up a content development studio, to be launched next month, which will include photo studios and content editors to help develop brand stories.
“We hope to attract international attention to what is happening in Saudi Arabia. The international partnerships and investment will be an important factor in our success,” said Çakmak.
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