Qatar has introduced a new startup investment program during the recent Web Summit, aiming to attract and support seed and growth-stage tech companies looking to establish or expand their operations in the country. The “Startup Qatar Investment Program,” backed by a $100 million fund managed by Qatar Development Bank (QDB), is set to provide significant financial and strategic support to startups across various industries.
Key Takeaway
Qatar has launched a
00 million startup investment program, managed by Qatar Development Bank, to provide funding and strategic support to seed and growth-stage tech companies aiming to establish or expand their operations in the country.
Support for Early-Stage and Growth-Stage Startups
The program is designed to offer funding of up to $500,000 for early-stage startups seeking to establish a presence in Qatar, and up to $5 million for growth-stage companies aiming to expand their operations within the Middle Eastern country. Moreover, in addition to financial assistance, portfolio startups will gain access to markets and expertise, as highlighted by the development bank.
Targeted Sectors and Strategic Importance
The program is set to focus on startups in over fifteen sectors, including fintech, cleantech, agritech, B2B SaaS, healthtech, marketplaces, proptech, AI & ML, and robotics. According to QDB CEO Mr. Abdulrahman bin Hesham Al Sowaidi, the initiative aims to position Qatar as a major hub for startups, particularly in the tech sector, due to its strategic importance. The efforts are geared towards attracting and retaining talents to support the entrepreneurship ecosystem, foster innovation, and accelerate technology adoption across all domains, contributing to a sustainable and business-friendly economy.
Regional Competition and Broader Impact
Qatar’s move to bolster its tech ecosystem through the startup program and the $1 billion venture capital fund of funds signifies a crucial step in competing with neighboring countries such as Saudi Arabia and the UAE. The urgency is evident, as Qatar represented only 6% of deals across the MENA region last year, with venture capital investment in its startups amounting to a mere 43 million Qatari riyal (~$11 million) in 2023. In contrast, Saudi Arabia and the UAE dominate in terms of deal volume and investment.
Promising Outlook for the Broader Region
Qatar’s heightened engagement in venture capital, spearheaded by its sovereign wealth fund and development bank, offers a promising outlook for the broader region. This increased involvement in venture capital presents a positive trend, especially considering the decline in venture capital activity experienced in the MENA region last year. The region’s advantage is further strengthened by the significant local investor involvement in backing startups.
