Qatar announced a startup investment program through its development bank at the recent Web Summit. The program aims to attract seed and growth-stage technology companies looking to establish or expand operations in the country. TechCrunch has learned that the program, known as the “Startup Qatar Investment Program”, is backed by a $100 million fund managed by Qatar Development Bank (QDB).
QDB said in a statement that the program will provide funding of up to $500,000 to startups looking to establish a presence in Qatar and up to $5 million to startups looking to expand their operations in the Middle Eastern country. Furthermore, the development bank stressed that apart from financial support, it will provide startups in its portfolio with access to markets and expertise. As stated on the website, the program welcomes startups from more than 15 sectors including fintech, cleantech, agritech, B2B SaaS, healthtech, marketplaces, proptech, AI and ML, and robotics. Targeted.
“Due to its strategic importance, QDB is intensifying its efforts to position Qatar as a key hub for start-ups in various industries, especially in the high-tech sector,” said Abdulrahman bin Hesham Al Sowaidi, CEO of QDB. said. Mr. Al Sowaidi said, “Through these initiatives, we will attract and retain talent from a variety of sectors, support the entrepreneurship ecosystem, foster innovation, and accelerate technology adoption across all sectors to ensure sustainability. We aim to contribute to a viable and business-friendly economy,” said Al Sowaidi.
Qatar's startup program supports venture firms such as US-based Alpha Wave Global, which manages a $300 million early-stage fund (Alpha Wave Incubation) backed by ADQ, one of Abu Dhabi's sovereign wealth funds. This is consistent with the model adopted by Similar venture funds across the Gulf Cooperation Council (GCC) offer startups from outside the region a “second” headquarters or office in the region (a hub to expand their operations across MENA and the GCC) in exchange for funding or additional business. The law stipulates the establishment of a advantage.
As in most venture ecosystems, some of these requirements are mandated on these venture capital firms by limited partners in the Gulf, primarily sovereign wealth funds. Just last week, Qatar's sovereign wealth fund announced a $1 billion venture capital fund of funds focused on international and regional venture capital funds.
For Qatar, the launch of the fund of funds and startup program marks an important step towards developing a technology ecosystem comparable to neighboring countries Saudi Arabia and the UAE. Data from emerging markets data tracker Magnit shows that Qatar accounted for just 6% of deals across the MENA region last year, and its venture capital investments in startups amounted to just 43 million Qatari riyals (approximately $11 million). The urgency is clear from the fact that it has become clear that there was no such thing. 2023. In contrast, Saudi Arabia accounts for 52% of the region's trade, with the UAE dominating in terms of trade volume.
Having said that, more competition contributes to regional advantages. Last year, venture capital activity in the MENA region fell by 23%, compared to the global average of 42%. Against this backdrop, Qatar's increased involvement in venture capital led by sovereign wealth funds and development banks comes as 55% of investors involved in supporting startups last year were local investors. The outlook is bright for the wider region.