Qatar unveiled its startup funding program on the current Internet Summit via its growth financial institution. This system goals to draw seed and growth-stage tech corporations looking for to determine or develop operations throughout the nation. TechCrunch has discovered that this system, generally known as the “Startup Qatar Funding Program,” is backed by a Qatar Improvement Financial institution (QDB)-managed $100 million fund.
In an announcement, QDB revealed that this system will provide funding of as much as $500,000 for early-stage startups trying to set up a presence in Qatar, and as much as $5 million for growth-stage corporations looking for to develop their operations within the Center Japanese nation. Moreover, the event financial institution highlighted that other than monetary help, it would present portfolio startups entry to markets and experience. As said on its web site, this system targets startups in over fifteen sectors, together with fintech, cleantech, agritech, B2B SaaS, healthtech, marketplaces, proptech, AI & ML, and robotics.
“QDB is intensifying its efforts to place Qatar as a serious hub for startups throughout numerous industries, significantly the tech sector as a result of its strategic significance,” mentioned QDB CEO Mr. Abdulrahman bin Hesham Al Sowaidi. “By these efforts, we intention to draw and retain abilities in numerous fields to help our entrepreneurship ecosystem, foster innovation and speed up know-how adoption throughout all domains in a bid to contribute to a sustainable and business-friendly financial system,” Al Sowaidi mentioned.
Qatar’s startup program aligns with fashions employed by enterprise corporations like U.S.-based Alpha Wave International, which manages a $300 million early-stage fund (Alpha Wave Incubation) anchored by ADQ, certainly one of Abu Dhabi’s sovereign wealth funds. Throughout the Gulf Cooperation Council (GCC), comparable enterprise funds stipulate that startups from outdoors the area set up a “second” headquarters or workplace of their areas (which function bases for increasing operations throughout MENA and GCC) in return for funding and extra enterprise benefits.
Like most enterprise ecosystems, a number of of those necessities are mandated by restricted companions, primarily sovereign wealth funds, within the Gulf upon these enterprise capital corporations. Simply final week, Qatar’s sovereign wealth fund unveiled a $1 billion enterprise capital fund of funds devoted to worldwide and regional enterprise capital funds.
For Qatar, launching its fund of funds and startup program signifies an important step towards creating its tech ecosystem to rival its neighbors, Saudi Arabia and the UAE. The urgency is obvious, as knowledge from rising markets knowledge tracker Magnitt reveals that Qatar represented solely 6% of offers throughout the MENA area final yr, with enterprise capital funding in its startups amounting to a mere 43 million Qatari riyal (~$11 million) in 2023. In distinction, Saudi Arabia accounts for 52% of the area’s offers, whereas the UAE dominates when it comes to deal quantity.
With that mentioned, extra competitors contributes to the area’s benefit. Final yr, the MENA area skilled a 23% decline in enterprise capital exercise in comparison with the worldwide common of 42%. In opposition to this backdrop, Qatar’s heightened engagement in enterprise capital, spearheaded by its sovereign wealth fund and growth financial institution, affords a promising outlook for the broader area, the place 55% of buyers concerned in backing startups final yr had been native.