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Qatar Investment Authority expanded its Fund of Funds program to $3 billion, tripling its size a year after launch, and has added a coveted perk: access to subsidized AI computing power, a move that executives expect will help Doha become a leading venture hub.
The program has deployed capital to 12 firms so far, with individual commitments ranging from $50 million to more than $150 million per fund, Mohsin Pirzada, QIA’s head of funds investment, said in an interview at Web Summit Qatar.
“It’s a reflection of the demand we are seeing,” Pirzada said, adding that the size of the venture capital industry now puts Qatar on par with larger Gulf economies.
As part of the push, QIA and Qatar Development Bank will offer startups and portfolio companies access to compute from Qai, the state-backed AI infrastructure platform. “We felt this would be a big differentiator,” Pirzada said.
The initiative is also aimed at talent. With restrictions on immigration to the US and Europe, Pirzada said Qatar sees an opening to attract founders and engineers. There “is a market opportunity to attract talent to the country and help us develop our ecosystem, develop the next generation. This is the long, long view,” he said.
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In the Middle East, venture deals hit a record $3.4 billion last year, driven by Saudi Arabia and the UAE, with nearly half of funding coming from global investors, according to a report by data provider Magnitt. Almost half of venture capital investments in the region last year came from global fund managers, a new record, with investors including Blackstone, General Atlantic, and Permira building up their investment activities in the Middle East.
A major bottleneck for growth are exits. QIA’s program aims to help address this: One of the new firms to receive funding is Ion Pacific, which focuses on secondaries and other financing to provide liquidity to investors.
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