The Qatar Development Bank (QDB) is rolling out a new co-investment programme that enables investors to provide part of the required capital for startups with QDB investing the remaining capital, up to QAR 3.65 million ($1 million) per deal, thus reducing the risks carried by individual and corporate investors.

The development bank has also revamped its existing SME equity fund Istithmar and shariah-compliant equity financing product Ithmar investment programs to meet the evolving needs help early-stage companies and entrepreneurs.

"Through these programmes, QDB aims to cement Qatar's position as an ideal ecosystem for entrepreneurship where demand meets opportunity to foster innovation and growth," Abdulrahman Hesham Al Sowaidi, QDB’s Acting CEO, said during the 5th edition of its Investment Forum, held in cooperation with Refinitiv, a London Stock Exchange Group business.

The bank has upgraded its seed programme Istithmar to include a per-deal funding of QAR 1.8 million, compared to its previous fund infusion of QAR 100,000.

Istithmar's strategy includes investment in projects in Qatar with QAR 365 million, in different sectors with a focus on supporting viable businesses with preference for strategic sectors (except construction and contracting and trade).

The program’s target allocation is 20% in innovative small enterprises and 80% in growing medium enterprises (all Qatari-owned and with active involvement of Qataris in management).

On Tuesday, the Qatar Stock Exchange (QSE) and the Qatar Development Bank (QDB) joined hands to start a new financing programme to help SMEs cover the cost to list on the QSE’s Venture Market (QEVM) and to meet their funding requirements.

According to Magnitt's "2023 Emerging Venture Markets Investment" report, the MENA region has surpassed its 2021 funding level and  saw a record year of funding in 2022. MENA funding crossed the $3 billion mark, reporting an annual rise of 8.3%.

Qatar is ranked fourth in the MENA region in terms of venture capital activity, with 45 transactions accounting for a total of QAR 97 million in 2022, marking the 'third consecutive year of growth' in its venture capital ecosystem, Al Sowaidi said.

The UAE, Saudi Arabia and Egypt together have the lion's share of VC funding in the MENA region, accounting for about 74% of investments in 2022. The three countries collectively attracted funding worth $1.19 billion, $987 million and $517 million, respectively, according to Magnitt data.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Daniel Luiz)