The Qatar Investment Authority (QIA) is using its substantial asset base, valued at over $500 billion, to draw venture capital firms to the resource-rich nation. The QIA’s fund of funds initiative, with a capital of $1 billion, is designed to amplify investment in sectors such as technology and healthcare. This strategic move is aimed at diversifying Qatar’s economy, which is primarily powered by the oil and gas industry.
The QIA has welcomed its inaugural batch of venture capital fund managers. Among them is B Capital, a technology-oriented firm led by Facebook co-founder Eduardo Saverin. B Capital is set to open its first Middle Eastern office in Doha, the capital city of Qatar. It will be joining other participants in the program, including Rasmal Ventures, Utopia Capital Management, and Builders VC.
Raj Ganguly, co-CEO of B Capital, praised Qatar’s approach to artificial intelligence (AI) and its ongoing support for the sector. He expressed excitement about the AI testing grounds being set up in the Gulf Cooperation Council (GCC) region and voiced his firm’s readiness to back GCC founders with a global vision. B Capital, which specializes in enterprise, fintech, healthcare, and climate investments and manages assets worth over $7 billion, seeks to invest in technology ventures from their early to late growth stages.
Mohsin Pirzada, head of funds at QIA, commented on the program’s dual investment objectives. The goal is not only to generate robust commercial returns but also to create a positive impact on Qatar’s venture capital ecosystem. The fund of funds is seeking venture capital firms that are eager to strengthen their foothold in Qatar. The aim is to stimulate the local economy, increase market deal flow, and foster a thriving ecosystem underpinned by a robust private sector.
However, attracting financial services firms is proving to be a challenge for Doha. Despite having a young, tech-savvy population and offering incentives, Doha is competing with other Middle Eastern countries that are also vying to attract top-notch financial companies. Saudi Arabia and UAE, for example, have successfully lured financial giants like Morgan Stanley, Goldman Sachs, Lazard, and BlackRock by offering attractive tax incentives and other benefits.
Despite the competition, Pirzada remains optimistic, emphasizing that success in one country can benefit the entire region. If all countries work towards attracting businesses and facilitating their growth, they can all reap the benefits.
