By Andrew Mills
DOHA (Reuters) – Qatar’s sovereign wealth fund is evaluating eight enterprise capital corporations so as to add to its “fund of funds” enterprise capital programme, which has already invested practically $500 million in six corporations, the top of funds on the Qatar Funding Authority (QIA) advised Reuters on Monday.
The $1 billion programme might be nearly totally invested if all eight further corporations are chosen, Mohsin Pirzada, QIA’s head of funds advised Reuters on the sidelines of Internet Summit Qatar, a Center East version of the world’s largest tech convention.
“At some stage, there might be a dialog round a possible enlargement,” Pirzada stated.
The enterprise capital programme represents lower than 0.2% of QIA’s holdings, estimated at $526 billion.
The programme was designed to fill a niche in collection a, b and c enterprise capital funding in Qatar in an effort to lure funds to the Gulf Arab state and construct a stronger atmosphere for entrepreneurship within the nation.
QIA will not say which further funds are into consideration.
“QIA is clearly a monetary investor, and so we’re nonetheless anticipating a return to be constructed from these investments. It is not a charity,” Pirzada stated.
Qatar, a rich fuel producer, has for years been striving to diversify its home economic system and is vying with bigger neighbours Saudi Arabia and the United Arab Emirates to lure monetary corporations to determine in Doha.
QIA has obtained purposes from round 120 corporations to hitch the programme because it was unveiled on the 2024 version of Internet Summit Qatar and, to date, it has chosen B Capital, Deerfield, Rasmal Ventures, Utopia, Builders VC and Human Capital.
Every of these corporations will open workplaces or regional headquarters within the Gulf Arab state, which Pirzada stated was not a requirement however one thing strongly inspired.
“By having individuals based mostly in Doha, you might be successfully bringing that ecosystem, that community impact that these people have, to the nation,” he stated.
Utopia, one of many programme’s corporations, has established its new Center East-focused enterprise capital fund known as A-Typical in Qatar. The fund expects to rent between 15 and 18 workers in Doha, stated Alina Truhina, managing companion at Utopia.
(Reporting by Andrew Mills; Modifying by Susan Fenton)