On Monday, the Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, declared its plans to allocate over $1 billion to international and regional venture capital funds. This move aims to foster the growth of the venture capital and startup ecosystem within Qatar and its neighbouring Gulf states.
Qatar’s SWF Plans To Invest Over $1Bn in Venture Capital Deals
The initiative was unveiled by Qatar’s Prime Minister, Sheikh Mohammed bin Abdulrahman Al Thani, emphasising that the investments would focus solely on venture capital funds, excluding private equity and debt investments.
This venture capital “Fund of Funds” seeks not only to achieve commercial returns at market rates for the sovereign wealth fund but also to stimulate the development of the venture capital sector in Qatar. A further objective is to draw venture capital firms and entrepreneurs from around the globe to Qatar and other Gulf Arab nations to bolster the local startup landscape, as stated by QIA.
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Mansoor Ebrahim Al-Mahmoud, QIA’s Chief Executive, highlighted the program’s intention to facilitate access to capital and support for innovative companies through venture capital (VC) funds. This support aims to enable these companies to scale their operations and extend their market reach within Qatar and the Gulf Cooperation Council (GCC) countries and, eventually, to a global platform.
Recently, QIA has increased its investment focus on the technology sector. Sheikh Mohammed announced this strategic investment during the inauguration of the Qatar Web Summit, marking the event’s first edition in the Middle East and one of the largest tech gatherings worldwide.
