Qatar’s $1bn fund to prioritise tech growth
Qatar Investment Authority (QIA) looks to launch the country’s first venture capital (VC) fund to invest more than $1 billion in regional and international VC funds.
The ‘Fund of Funds’ program will aim to attract international VC funds and entrepreneurs to Qatar and the wider GCC region, bringing 'deep VC and start-up expertise', the sovereign wealth fund said in a statement.
The investment program will prioritise the tech sector, including fintech, edtech and the healthcare sector.
“There is currently no dedicated pool of capital in Qatar for companies that are past seed funding and are ready for Series A to Series C funding rounds,” said QIA chief executive Mansoor Ebrahim Al-Mahmoud.
“QIA is launching this program to help ensure that innovative businesses can readily access capital and support from VC funds, enabling them to scale operations and expand market presence in Qatar, across the GCC, and ultimately onto the international stage."
The fund will primarily invest indirectly via other VC funds. It will make targeted co-investments with participating funds, and will not invest in private equity, debt, or any other funds.
International, regional, and emerging local fund managers will be part of the program, as the initiative looks to accelerates the development of Qatar's VC landscape.
Fund managers that wish to raise funds will need to show a commitment to Qatar and be set to play an active role in the GCC's VC and start-up ecosystem.
Last August, Saudi Arabia's Crown Prince Mohammed bin Salman launched a $200 million fund to invest in local and international high-tech companies. The kingdom announced more than $9 billion worth of investments in its tech sector at the LEAP event held last February.
Months later, Dubai Integrated Economic Zones Authority unveiled a $136 million (500 million dirhams) VC fund to finance technology startups to supports the objectives outlined in the Dubai Economic Agenda, D33.
Abu Dhabi sovereign fund Mubadala also announced last month that it will invest significant capital into artificial intelligence and space tech in 2024.
