Qatar Launches $1B Fund of Funds to Attract VCs and Startups

• Qatar’s sovereign wealth fund launches $1B VC fund to attract startups, VCs.
• The fund focuses on fintech, edtech, and healthcare for Series A-C rounds.
• Qatar aims to grow its startup ecosystem, and reduce oil reliance.

The Qatar Investment Authority (QIA) has announced a $1 billion venture capital fund of funds aimed at drawing international VCs and startups to Qatar and the Gulf region.

Their investment focus

The sovereign wealth fund’s new program will invest in VC funds focused on fintech, edtech, and healthcare while making select co-investments.

By establishing a dedicated pool of capital for Series A to Series C rounds, QIA hopes to grow Qatar’s startup ecosystem and reduce economic reliance on oil.

QIA CEO Mansoor Ebrahim Al-Mahmoud stated the fund will ensure innovative businesses can readily access support and capital to expand locally, in the GCC, and globally.

Diversifying their economies

The move comes as Gulf states increasingly invest in tech and VCs to diversify their economies.

While Saudi Arabia has led with funds like Jada, QIA’s is the first regional fund exclusively targeting VCs.

Requirements for participating funds include establishing operations in Qatar and outlining GCC expansion plans.

QIA’s focus aligns with calls from VCs last year for Gulf wealth funds to invest more locally versus foreign startups.

A big focus on MENA

Historically, QIA has backed ventures like Builder.ai and India’s Swiggy with limited GCC ties.

Now, its new fund will encourage economic development and startup activity within the region.

With MENA startups raising record capital in 2022, QIA is strategically launching its VC fund of funds.

By stipulating local presence and participation, the $1 billion initiative plots an ambitious pipeline to transform Qatar into a leading regional hub for venture capital.