The Skyline of Doha, Qatar.
Tim De Waele | Corbis | Getty images
The Qatar Investment Authority uses its more than $ 500 billion in assets to attract risk capital companies to the hydrocy -rich state.
The $ 1 billion fund program of the sovereign Wealth Fund program-that invests in both international and regional VC funds-is designed to strengthen investments in areas such as technology and health care, while Qatar wants to diversify the dominant oil and gas industry.
Now it has accepted his first group of managers of venture capital funds.
B Capital, a technologically targeted company led by Facebook-founder Eduardo Saverin, is one of the group of VCs being launched in Doha and opens its first Middle East office in the capital of Qatari. It agrees with Rasmal Ventures, Utopia Capital Management and Builders VC, who have also become a member of the program.
Raj Ganguly, Co-CEO of B Capital, greeted the approach to the Gulf State for artificial intelligence and its support for the sector, as of particular importance.
“With all the sandboxes that are made here in the GCC (Gulf Cooperation Council) to try new types of AI, we think it is an incredibly exciting time,” Ganguly told CNBC on Web Summit Qatar in Doha on Monday. “We believe that innovation can come from anywhere. We want to support founders of the GCC that have a global mindset.”
B Capital, which focuses on Enterprise, Fintech, Health Care and Climate Investments, has more than $ 7 billion in assets under management and says that it is aimed at seed for investments in the growthase.
Mohsin Pirzada, head of funds at QIA – a huge sovereign power fund with interests in price assets ranging from Harrods in London to Heathrow Airport – CNBC told that the program has a double investment mandate.
“First of all, we are looking for a strong commercial return and secondly we are looking for a positive impact on the VC ecosystem in Qatar,” he said.
He added that the fund of funds was looking for VCs who wanted to deepen their roots in the country. It is intended to “have a favorable impact on the local economy, to stimulate the deal stream in the market and to support the development of a flourishing ecosystem that is supported by a strong private sector,” he added.
A test for Doha
The relocation comes as a Doha stands for a certain challenge to attract financial service providers. In addition to having a young, digital educated population, many countries in the Middle East also offer stimuli to attract legendary financial service providers.
For example, Riyadh has launched a program that requires a company looking for government contracts to relocate its regional headquarters to Saudi Arabia and offers corporation tax stimuli. The Kingdom has seen various Wall Street companies move to the Saudi capital, including Morgan Stanley, Goldman Sachs, Lazard and Blackrock.
The VAE also focuses on global companies, with billionaire Ray Dalio, Hedgefonds Brevan Howard, asset manager PGIM and Private Equity giant -General Atlantic Ocean, all setting up offices in Capital Abu Dhabi.
“The keyword here is ‘compliment’ – this is a relatively small region, so when a country wins, we all win. If we all attract companies, innovators and help companies, we will all take advantage,” the Qia’s Pirzada told CNBC.