Qatar is making bold moves to transform Doha as it strives to become a regional hub for venture capital (VC), leveraging its substantial sovereign wealth fund to attract global financiers. According to a recent report by the Financial Times, the Qatar Investment Authority (QIA), which manages approximately $500 billion, has allocated nearly half of a $1 billion fund-of-funds initiative aimed at nurturing Qatar's burgeoning startup ecosystem.
Traditionally known for large international investments—such as Harrods and Heathrow Airport—the QIA is now shifting its focus inward. This strategic pivot aligns with broader trends among Gulf states, where hydrocarbon-rich monarchies are diversifying their economies and reducing their reliance on fossil fuels. Mohsin Pirzada, head of funds at QIA, emphasized the competitive and “healthy” race among Gulf nations to attract fund managers.
While the majority of QIA's investments will remain international, it now seeks partners willing to invest directly within Qatar to fuel economic diversification. "We encourage our investment partners to engage deeply with our ecosystem and promote local innovation," Pirzada stated.
This significant initiative follows similar moves by regional competitors. For example, Saudi Arabia's Public Investment Fund (PIF) attracted the global asset management giant BlackRock to establish ventures worth $5 billion in Riyadh, and Abu Dhabi is using its sovereign wealth to draw hedge funds and other financial players to its shores.
The QIA has formed partnerships with several prominent VC firms, including Builders VC from San Francisco and B Capital, co-founded by Facebook's Eduardo Saverin. Notably, these ventures have already established offices in Doha.
Alongside venture capital, the QIA is also encouraging private equity-backed companies to expand operations within Qatar. "We want companies backed by global investment giants like Blackstone and KKR to see the potential here in Doha," Pirzada highlighted. The QIA plans to offer attractive incentives to such firms, positioning Qatar as the gateway to the broader Middle Eastern market.
This VC-focused initiative stems from a two-year study led by the Prime Minister's office, which looked at ways to bolster Qatar's regional standing and support entrepreneurial endeavors. Companies backed by the QIA are expected to contribute significantly to the local ecosystem by establishing offices, launching funds, and creating training programs for local entrepreneurs.
Pirzada noted the QIA's commitment to investing with partners who exhibit genuine dedication to Qatar's growth. While no strict investment requirements exist, their selection process is precise—narrowing down from 120 applicants to only 14 firms. A notable example of this selectivity was the rejection of a fund manager who planned to commute between Texas and Doha, as Pirzada felt this arrangement did not show sufficient seriousness.
Despite its stature as one of the wealthiest countries per capita and global attention as the host of the 2022 FIFA World Cup, Qatar has faced challenges in achieving economic diversification. The new venture capital initiative is part of its broader strategy to alter this narrative, aiming to nurture vibrant innovation ecosystems for long-term growth.
With plans to boost energy production by nearly 85% by the end of the decade, global asset managers are taking notice of the QIA's potential. Nevertheless, Pirzada remarked on the uncertainty surrounding the timeline for when these energy-driven investments will flow significantly.
Simultaneously, the Web Summit Qatar 2025 has become the MENA region's preeminent startup event, reaching full capacity with 25,747 attendees from 124 countries. It attracted 1,520 startups and 723 investors to the Doha Exhibition and Convention Centre (DECC), highlighting over 10,000 more attendees than last year. Approximately 47% of the participating startups are women-founded, marking significant strides toward gender balance.
The event's growth is propelled by the Web Summit team actively soliciting the involvement of women-led startups and providing special discounts to stimulate participation. Notably, global tech giants like Amazon, Meta, Microsoft, and TikTok have joined as partners, showcasing their innovations alongside fledgling startups.
Among the 381 speakers set to present at the event are Hollywood star Will Smith, Scale AI founder Alexandr Wang, and Facebook co-founder Eduardo Saverin. The Web Summit also features more than 120 AI-powered meetups aimed at connecting attendees through shared interests.
The QIA's $1 billion Fund of Funds program also marked its anniversary at the Web Summit, with Prime Minister Sheikh Mohamed bin Abdulrahman bin Jassim al-Thani highlighting its role in bolstering the local startup ecosystem. The QIA has partnered with six leading investment firms, including B Capital and Deerfield, driving innovation across various sectors.
These firms are expected to establish regional headquarters within Doha, cementing Qatar's position as not just a local but a global tech hub. The blend of significant financial initiatives and expansive tech events positions Qatar uniquely to attract and cultivate innovation, ensuring its growth and sustainability on the global stage.