Qatar recently introduced its startup investment program at the Web Summit, facilitated by its development bank. The program aims to attract seed and growth-stage tech companies looking to establish or expand their operations within Qatar. TechCrunch has exclusive details that reveal the program, known as the “Startup Qatar Investment Program,” has a backing of a $100 million fund managed by the Qatar Development Bank (QDB).
In a statement, QDB announced that the program will provide funding of up to $500,000 for early-stage startups aiming to set up in Qatar, and up to $5 million for growth-stage companies seeking to scale their operations in the Middle Eastern nation. In addition to financial support, the development bank will also offer portfolio startups access to markets and expertise. The program targets startups in over fifteen sectors, including fintech, cleantech, agritech, B2B SaaS, healthtech, marketplaces, proptech, AI & ML, and robotics, as stated on its website.
Mr. Abdulrahman bin Hesham Al Sowaidi, CEO of QDB, emphasized the organization’s efforts to position Qatar as a key hub for startups, particularly in the tech sector. The goal is to attract talent, support entrepreneurship, drive innovation, and accelerate technology adoption across various industries to contribute to a sustainable and business-friendly economy. This aligns with strategies employed by venture firms like U.S.-based Alpha Wave Global, managing a $300 million fund, Alpha Wave Incubation, anchored by ADQ, one of Abu Dhabi’s sovereign wealth funds.
The venture capital landscape in the Gulf Cooperation Council (GCC) follows similar models, where startups from outside the region must establish a presence in return for funding and business benefits. Qatar’s initiatives mirror a growing trend in the region, as evidenced by the launch of a $1 billion venture capital fund of funds by the country’s sovereign wealth fund. This marks a significant step for Qatar in building a competitive tech ecosystem to rival its neighbors.
Despite representing only 6% of deals in the MENA region last year, with a total venture capital investment of 43 million Qatari riyal (~$11 million) in 2023, Qatar’s increased focus on venture capital signals a positive outlook for the broader region. With 55% of investors backing startups in the region being local, increased competition and engagement in venture capital could lead to a more dynamic and robust ecosystem for startups in the Middle East and North Africa.
