As much as QR43mn worth of venture capital investments in Qatar were recorded in 2023, according to Qatar Development Bank’s (QDB) latest report, in collaboration with MAGNiTT research platform.
The report further stated that a total of QR475mn was channelled into 187 startups over the 2016-2023 period, contributing to 224 venture capital deals.
During a five-year period, Qatar maintained a 17% compounded annual growth rate (CAGR) in investments and a 10% growth rate in deals, despite the decline that affected the performance of the global venture capital ecosystem due to geopolitical conditions and rising interest rates, which contributed to the decrease in the total value of investments in Qatar in the past year.
The report also showed that five of Qatar’s top-performing industries accounted for 77% of venture capital flows into the country with manufacturing leading at 36% followed by fintech at 15% and healthcare technology at 12%.
According to the report, QDB raised their capital disbursement in 2023, witnessing a 95% increase compared to the prior year. Furthermore, the bank’s investment portfolio companies contributed to the creation of over 825 high-skill jobs, marking a 38% growth from the previous year.
In a statement, QDB emphasised that the report provides insights into Qatar’s venture investment landscape, last year’s capital flows, including ones provided to start-ups in the tech sector and the bank’s contribution to the development of the entrepreneurial ecosystem.
The report showcased that Qatar has maintained its position among the five most active countries in the Middle East and North Africa in 2023, accounting for 6% of total deals in the region.
QDB CEO Abdul Rahman bin Hesham al-Sowaidi said the report reflects QDB’s staunch commitment to enhancing transparency when it comes to the performance of Qatar’s venture investment landscape and the bank’s efforts to provide entrepreneurs with access to information and reports that offer an integrated view of the various available financing solutions.
“The report also represents a tool that the bank and other stakeholders can leverage to attract new investors and expand venture investments in the private sector. We continue to foster Qatar’s investment landscape by developing and offering various investment programmes throughout the different stages of business growth, including our seed funding programme Ithmaar and our growth funding programme Istithmar.
“Last year, we added our co-investment programme, which aims to support investors and investment funds from the private sector. The bank will continue to launch initiatives to bolster its contribution to the local economy, develop talent, and enable the private sector to tap this industry by leveraging the appropriate investment tools,” al-Sowaidi said.
Philip Bahoshy, CEO and founder of MAGNiTT, said Qatar’s venture capital ecosystem represents a pillar of progress across all industries.
“We are pleased to cooperate with Qatar Development Bank for the fourth consecutive year to issue our annual 2023 report on venture capital in Qatar. The report serves as an outstanding tool for understanding and enhancing transparency in Qatar’s ever-evolving venture capital ecosystem.
“This year, we noticed a major shift in investor trends, as is the case in other Mena markets. Business accelerators have significantly increased their share in the venture capital market from 16% in 2022 to 31% in 2023. At the same time, they continued to strengthen their presence, accounting for 23% of total deals in 2023 representing the largest increase in the Mena region,” Bahoshy said.
