Qatar — VC navigator
A new promising venture land
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Market overview
Review of the market and key statistics
VC List
The table of 60+ VCs, their investment focuses and contacts
Taxes & incorporation
Information on how to launch a startup in the Saudi Arabia
26
Venture deals in 2023
$34 Mn
Raised by startups in Qatar in 2023
37%
Of total funding falls on manufacturing
Introduction
This report is a go-to guide for international startups and investors that are keen on exploring Qatari market, as it answers several questions frequently asked by entrepreneurs. Additionally, the report includes the list of VC funds and business angels ready to invest into startups in different spheres.
Qatar, one of the richest countries globally, is situated on a small peninsula in the Persian Gulf, sharing land borders with Saudi Arabia. While its economy has traditionally been dominated by oil and gas, Qatar has been making strides to diversify into other sectors. Its capital, Doha, serves as the main economic, cultural, and financial hub of the country. The Qatari government has implemented several policies and initiatives aimed at fostering innovation, encouraging foreign investment, and creating a vibrant venture capital ecosystem.
The capital, the main port of the country, an important industrial, cultural and commercial center is the city of Doha (956 thousand inhabitants). Other relatively large cities are the oil and commercial port of Umm Said and Zikrit — a shallow water port on the west coast.
2023 was a difficult year for Qatar's startup ecosystem, experiencing the lowest venture investment figures in terms of deal numbers seen in the past four years. This 61% decline in Qatar reflects wider patterns, as the MENA region saw a 23% drop in investment, and the global venture capital environment faced a 42% reduction.
This situation failed to align with the positive forecasts of executives, 91% of whom had anticipated better investment performance over the next 12 months compared to the past year.
Qatar's venture capital ecosystem has historically been smaller compared to other GCC nations but is poised for growth. In 2023, the venture ecosystem experienced a slowdown, with a 61% decrease in deal volume. However, optimism remains high for the future, especially with the launch of Qatar’s first $1 billion venture capital fund, which focuses on fintech, healthcare, and edtech sectors.
Like other GCC nations, Qatar is focused on expanding its economic base, but it lags behind Saudi Arabia in terms of diversification, with oil and gas still making up 50% of its GDP. However, Qatar is investing in emerging sectors, with 37% of venture capital directed towards the Industrial & Manufacturing sector, followed by significant investments in Fintech and Healthtech, which rank as the second and third most popular areas for funding.
Market overview
$3 bn
Total venture funding
3x
Growth since 2020
21
Total VC exits
Qatar has multiple initiatives in place to entice foreign investors, which include granting a residence permit as an option for those who invest in real estate and various sectors of the economy. Furthermore, the nation takes an active role in international economic conferences and expos with the goal of highlighting its investment offerings.
1. Aviation. Qatar Airways possesses one of the most modern aircraft fleets globally, with an average fleet age of approximately five years, consisting solely of Airbus and Boeing aircraft. The airline takes special pride in acquiring cutting-edge aircraft such as the Boeing 787 Dreamliner and the Airbus A350-1000, which are considered among the most advanced in the aviation industry.
2. Banking. In recent years, Qatar's economy has seen remarkable growth, thanks to government initiatives rooted in free market principles. This has led to the establishment of a robust and secure banking and financial system aimed at safeguarding the nation's interests. Since 2011, Islamic banking services have been exclusively offered by Sharia-compliant banks, accessible to individuals of all faiths, reflecting Qatar's commitment to inclusive financial practices.
3. Medicine. Qatar stands out in the Middle East for its cutting-edge healthcare system, which has been elevated through substantial government funding and the integration of global best practices in medical care and research. Notably, Qatar is a pioneer in providing comprehensive healthcare coverage to all its citizens at little to no cost, setting a rare example of universal access to quality medical services on a global scale.
4. ICT. Projections suggest that Qatar's IT sector is set to expand by $1780.93 million from 2022 to 2027, with an average growth rate of 7.71% expected.
By early 2023, Qatar had 4.89 million active cellular mobile connections, exceeding 180.9% of the country's population, highlighting the widespread adoption of mobile technology in the nation.
Qatar has multiple initiatives in place to entice foreign investors, which include granting a residence permit as an option for those who invest in real estate and various sectors of the economy. Furthermore, the nation takes an active role in international economic conferences and expos with the goal of highlighting its investment offerings.
Editor's opinion on market characteristics
Pros & Cons of launching a startup in Qatar
Over 60 venture funds and angels are gathered in the list – start to explore and send your pitch!
Incorporation
8 steps to incorporate
your business in Qatar
Incorporating a startup in Qatar involves several steps that may vary depending on the chosen jurisdiction and company type. Here is a general overview of the steps involved:
1. Reserve company name with the Commercial Registry Department
To begin the process, you must reserve a unique company name with the Commercial Registry Department. This ensures that your chosen name isn't already in use and adheres to Qatar's naming regulations. You can complete this process online through the Ministry of Commerce and Industry (MOCI) portal.
2. Prepare the Memorandum and Articles of Association
These documents are essential for setting up your company’s legal structure. The Memorandum of Association defines your company's objectives, ownership structure, and capital distribution, while the Articles of Association outline the company’s internal operations. These must be prepared in Arabic and comply with Qatari law.
3. Review by the Ministry of Business and Trade
The Ministry of Business and Trade will review your Memorandum and Articles of Association to ensure they align with local laws and business regulations. This review is crucial before you proceed with formal registration.
4. Open a bank account
You’ll need to open a corporate bank account in Qatar to deposit your initial capital. This step is mandatory to demonstrate your company’s financial readiness and to secure approval from the MOCI for incorporation. Most major Qatari banks offer business accounts, and you'll need to present your draft incorporation documents when applying.
5. Get a lease agreement
Obtaining a lease for office space is a necessary step, as having a registered physical address is required for your business license. The lease agreement will need to be submitted as part of your application for incorporation.
6. Pay the Chamber of Commerce fee
To operate in Qatar, companies must register with the Qatar Chamber of Commerce. This registration involves paying a fee, which grants you access to local business support services, networking opportunities, and resources.
7. Submit an application for the CR to Ministry of Commerce and Industry (MOCI)
Once you have gathered all the necessary documents, you must submit your application for the Commercial Registration (CR) to MOCI. This is the final step in officially registering your company and receiving the necessary approvals to begin operations.
8. Staying Compliant
After your company is incorporated, it is essential to stay compliant with Qatari regulations. This includes submitting annual reports, renewing your licenses, and keeping up with any changes in business laws. Regular compliance checks ensure the smooth operation of your business.
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