QAR 365 million investment initiative to play significant role in developing private sector business opportunities for Qataris

Doha, Qatar - 13 September 2015

Qatar Development Bank (QDB) announced today a new line of direct (equity) investment offering designed to support Qatari SMEs "Istithmar". In addition to that, QDB launched the "SME Equity Fund," the first product under the new offering. The "SME Equity Fund" is a landmark new initiative that is a first of its kind in the State of Qatar. Worth 365 million Qatari riyals, the fund is designed to provide valuable investment to innovative start-up companies and Small & Medium Enterprises ("SMEs"). In addition to the SME Equity Fund, QDB announced "Istithmar", a new line of direct investment (equity) products and initiatives in the bank. The announcements were made at a press conference on Sunday, September 13, 2015 at Qatar Development Bank headquarters.

The aim of the "SME Equity Fund" is to provide the capital needed for Qatari entrepreneurs or Startup owners to realize their business vision and aspirations. The SME Equity Fund initiative is designed to encourage new and innovative projects that will contribute to the country's economic diversification, generating value neutral returns that can be re-invested in subsequent funds to help and support the economy. The fund will assist in building capabilities and help accelerate the development of Qatari SMEs to world class standards.

Mr. Abdulaziz Bin Nasser Al Khalifa, CEO of Qatar Development Bank, said: "At QDB we aim to support a successful transition towards the country's overall economic diversification. This initiative is an unprecedented milestone for entrepreneurs to receive equity investments and is in line with the bank's long term support offerings designed to drive forward existing Qatari entrepreneurs and SMEs potential for success and growth. To this end, we have developed the investment offering ("Istithmar") to complement QDB's overall strategy and to offer a new line of services to support entrepreneurs and SMEs to reach their goals. The first product under "Istithmar" is the SME Equity Fund, which provides direct (equity) investments from QDB to Qatari entrepreneurs in order to provide financial and non-financial support. In order to reach this goal, we have developed a complete operating framework for this unique fund and we urge Qatari entrepreneurs to benefit from this offering that surpasses mere financial support to provide an overall environment that aid, guide and ensure the success of these projects."

Mr. Mohammed Al-Khater, Executive Director of Investment at Qatar Development Bank, emphasized on the importance of this fund to provide a new type of support to entrepreneurs and SMEs. Al-Khater further explained that what makes the "SME Equity Fund" initiative unique, is its ability to provide direct investments in equity which are typically reserved for higher risk businesses with high growth potential. Investors in this type of initiative take up an equity stake in the business with the objective of selling the stake in the future at a profit once the business has experienced growth and expansion. In addition to financial support, equity investors are more actively involved in the business, and have a seat on the board for example, in order to support and guide the entrepreneur in growing their business.

Al-Khater continues: "the "SME Equity Fund" initiative, is the first of its kind and also the largest in Qatar. Qatar Development Bank seeks to support  SMEs in Qatar by providing financial and non-financial support in a new and unique way To facilitate access to finance and support entrepreneurs, the bank tailored this initiative to cover three core phases; pre-investment, investment execution and post-investment."

The life term of the SME Equity fund reaches up to 10 years, five years for deployment and 3-5 years holding period.

Qatar Development Bank seeks to provide all the support tools necessary to catalyze and speed up the development of the Qatari private sector and contribute to the economic diversification in order to help build a sustainable competitive economy.

For more information about the Investment Department ("Istithmar"), the "SME Equity Fund" and/or to submit an application, please visit www.qdb.qa/investment

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About Qatar Development Bank (QDB)
Qatar Development Bank (QDB) was established in 1997 as the Qatar Industrial Development Bank, a 100% government-owned developmental organisation. Its primary aim was to develop investments within local industries, thereby accelerating growth and economic diversification in Qatar through support for private sector. Between 1997 and 2005, the bank expanded its portfolio, diversifying from its industrial base to include support and guidance for a range of non-industrial sectors identified as key to the development of Qatar. Shortly afterwards, the bank revisited its mission statement to reflect the successful completion of its new strategic objective and changed its name to Qatar Development Bank. The State of Qatar, QDB's sole shareholder, increased the bank's capital from 200 million to 10 billion riyals in 2008. Since that time, and reflecting the expansion of its mission and financial assets, QDB has launched a considerable number of strategic initiatives and programs, all designed to directly contribute to the economic growth and development of Qatar.

QDB's strategy is entirely in line with Qatar National Vision 2030. It is focused on promoting and facilitating the growth of the private sector in Qatar within key economic channels. In turn, this support will enable the development of long term, sustainable social and economic benefits across the economy.

Aside from offering financial support, Qatar Development Bank is tasked with promoting entrepreneurship in the private sector, facilitating the development of key economic sectors through the provision of capital and advisory services. QDB has also launched several initiatives, including Al Dhameen program, an indirect loan facility to guarantee commercial bank loans to private sector companies, in collaboration with other banks and financial institutions.

QDB's export arm "Tasdeer" program was created to develop and promote exports from Qatar, providing export credit guarantees in addition to financial products and solutions designed to mitigate the risks imposed on local exporters. The bank also provides consulting services in business development to help entrepreneurs to prepare for business. This will include feasibility studies, the conduct of market research and the selection of appropriate techniques; fundamentally helping to develop the capabilities of SME owners to enhance and refine their skills in the market and establish strong ties with financial and non-financial support entities.

For more information, please contact:
Mohammed Mamdouh                                                                     
Grayling                                                                     
Tel: +97450176155                                                    
Email: Mohammed.Mamdouh@grayling.com

© Press Release 2015