Qatar has announced a significant expansion of its support for the startup and venture capital ecosystem, with an additional $2 billion allocated to its Fund of Funds programme. The move was revealed by Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, signaling the nation’s deepening commitment to fostering innovation and economic diversification.
This new capital injection triples the initial commitment made by the Qatar Investment Authority (QIA), bringing the total size of the fund to $3 billion.
Bolstering the Venture Capital Landscape
The Fund of Funds was initially launched in February 2024 with a $1 billion commitment, which has already successfully anchored 12 major venture capital firms in Doha. With a strategic focus on the technology and healthcare sectors, the fund aims to strengthen Qatar’s position as a burgeoning hub for venture capital in the region.
The QIA, which holds nearly $580 billion in assets under management, is leveraging its financial power to build a robust local ecosystem. Prime Minister Al Thani stated, “We are pairing capital with technical power,” highlighting a holistic approach to ecosystem development.
Catalyzing Startup Growth
The government’s efforts are already showing tangible results. According to the Prime Minister, Qatar has witnessed an eightfold increase in startup incentives over the past year. This has led to a doubling of startup registrations and more than 6,000 applications from aspiring entrepreneurs.
To further accelerate this growth, the government will also provide dedicated computing credits for Qatar-based startups, giving them access to essential technological resources.
Attracting Global Talent
In a move to attract and retain top entrepreneurial talent, Qatar also launched a new 10-year residency programme. This scheme is designed for entrepreneurs, founders, investors, and senior executives, aiming to create a stable and attractive environment for building long-term businesses.
This initiative aligns with a broader regional trend, with neighboring Gulf states like Saudi Arabia, the UAE, and Oman also implementing long-term residency and “golden visa” programmes to attract foreign direct investment and skilled professionals.
About Qatar Investment Authority (QIA)
The Qatar Investment Authority is the sovereign wealth fund of the State of Qatar. Established in 2005, QIA is responsible for investing and managing the state’s financial reserves to secure a prosperous future for generations of Qataris. It invests across a wide range of asset classes and regions, as well as in Qatar’s own economy.
Source: AGBI
