Qatar: Local and regional entrepreneurs are set to benefit from an investment exceeding $1 billion through Qatar’s new venture capital fund of funds.

According to the Qatar Investment Authority, the initiative aims to nurture innovation within the country, with the assets allocated to international and regional venture capital funds.

The endeavor, as outlined in a statement by QIA, has two primary objectives. 

Firstly, it seeks to yield market-level commercial returns, aligning with the authority’s overarching mission to secure sustainable, long-term gains for the people of Qatar. 

Simultaneously, it seeks to bolster the sustainable growth of a dynamic VC and startup ecosystem in accordance with Qatar’s National Development Strategy. 

The authority said: “The program will aim to attract leading international VC funds and entrepreneurs both to Qatar and the wider GCC (Gulf Cooperation Council) region, bringing deep VC and startup expertise and contributing to the growth of a local and region base of venture capitalists and founders.”

QIA CEO Mansoor Ebrahim Al-Mahmoud underscored the significance of establishing a dedicated capital pool for companies beyond seed funding, saying: “Building a well-connected startup ecosystem network in Qatar is fundamental to diversifying the country’s economic base in the long-term.”

This influx is anticipated to inject profound expertise in VC and startup realms, thereby nurturing a local and regional cadre of venture capitalists and founders.

The program is slated to prioritize investment in sectors such as technology, including fintech and edtech, alongside healthcare. 

While its primary mode of investment will be through indirect channels via other VC accounts, it retains the flexibility to engage in targeted co-investments with participating funds. 

The fund of funds program is exclusive to VC reserves and will abstain from investments in private equity, debt, or alternative capital.

The initiative aims to make important strides toward closing the current funding gap for local and regional entrepreneurs.

Al-Mahmoud added: “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.”

Fund managers vying to secure capital will be tasked with demonstrating a robust track record characterized by consistent commercial performance. 

Moreover, a commitment to Qatar and active engagement within the GCC VC and startup landscape will be prerequisites, necessitating the establishment of an operational presence in Qatar and outlining expansion plans across the region.

Reflecting the dual investment mandate, the program will embrace international, regional, and emerging local fund managers. Close collaboration with Qatar’s wider VC and startup ecosystem will be fostered to harness synergies and maximize participation in various initiatives.

This strategic endeavor is poised to accelerate the evolution of Qatar’s venture capital ecosystem, infusing financial resources while importing global best practices and networks into the local market.