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This bank in Qatar is rolling out its co-investment product for startups
Qatar Development Bank will invest $1 million per deal and allow local and global funds to provide part of the required capital.
Qatar startups seeking financing can soon have access to a new program. The Qatar Development Bank (QDB) launched a co-investment product for startups, which involves investing $1 million per deal, and allowing local and global funds to provide part of the required deal.
This was announced by QDB Acting CEO Abdulrahman Hesham Al-Sowaidi at the bank’s fifth Investment Forum.
Al-Sowaidi noted that the new program would reduce risks carried by individual and corporate investors, thus completing investment rounds more effectively.
As part of its goal to support the growing needs of the country’s business ecosystem, QDB has also updated its existing SME equity fund Istithmar. It initially offered a fund infusion of $27,500, and has now upgraded it to include per-deal funding of $495,000. The fund’s investment strategy allocates 20% to small enterprises and 80% to growing medium enterprises, with a sector-agnostic approach (except construction, contracting, and trade).
Besides that, QDB has also updated its existing Shariah-compliant equity financing product Ithmar investment program, wherein QDB funds up to 90% of a project and targets early-stage companies.
QDB’s latest upgrades on its initiatives are part of its strategy to support the growing needs of the country’s business ecosystem, and position the country as an ideal ecosystem for entrepreneurship, said Al-Sowaidi.
Earlier this week, The Qatar Stock Exchange (QSE) and QDB partnered to start a new financing program to support SMEs in covering the cost to list on the QSE’s Venture Market and meet regulatory and financial requirements. Open to all SMEs in Qatar; the program offers competitive profit rates, flexible repayment periods, extended grace periods, and covering up to 70% of the advisory service fees.