Raising Funds For Your Business In Qatar

Published on and written by Cyril Jarnias

Qatar offers a dynamic environment conducive to business development, with numerous funding opportunities for ambitious entrepreneurs. Whether you’re an innovative startup or a growing SME, raising funds in Qatar can accelerate your development and bring your projects to life. In this article, we’ll explore the different steps to successfully raise funds in Qatar, from available funding sources to investor follow-up.

Hidden Treasures: Discover the Best Funding Sources in Qatar

Qatar boasts a rich and diverse funding ecosystem, offering numerous options for entrepreneurs. Here are the main funding sources to consider:

1. Qatari Investment Funds

Qatar is home to several major investment funds that play a crucial role in financing local and foreign businesses. Among the most important are:

  • Qatar Investment Authority (QIA): Qatar’s sovereign wealth fund, with assets estimated at over $450 billion, invests in various sectors worldwide.
  • Qatar Development Bank (QDB): This government financial institution offers specific funding programs for SMEs and startups.
  • Qatar Science & Technology Park (QSTP): This technology park provides funding and support for innovative companies in technology and research sectors.

2. Banks and Financial Institutions

Major Qatari banks, such as Qatar National Bank, Doha Bank, and Commercial Bank of Qatar, offer financing solutions tailored to businesses of all sizes. They provide commercial loans, credit lines, and project financing.

3. Angel Investors

Qatar has a growing number of angel investors, often experienced entrepreneurs or senior executives, willing to invest in promising startups. Networks like Qatar Angel Investors Network facilitate connections between entrepreneurs and investors.

4. Venture Capital

Several venture capital funds are active in Qatar, including:

  • Qatar Venture Capital: A $100 million fund launched by QDB to support technology startups.
  • 500 Startups MENA: An accelerator and seed fund present in Doha that invests in regional startups.

5. Government Programs

The Qatari government has implemented several initiatives to support entrepreneurship and innovation, such as:

  • QDB’s “Startup Qatar Investment” program, offering funding up to $5 million for innovative startups.
  • QSTP’s “Tech Venture” fund, which invests in high-potential technology companies.

Good to Know:

Qatar offers an attractive tax environment for businesses, with a corporate tax rate of only 10% and numerous free zones offering additional tax benefits.

The Art of Persuasion: Prepare an Irresistible Funding Package

To maximize your chances of obtaining funding in Qatar, it’s crucial to prepare a strong and convincing package. Here are the key elements to include:

1. A Detailed Business Plan

Your business plan should clearly present your vision, business model, and financial projections. Make sure to include:

  • A thorough analysis of the Qatari and regional market
  • Your development strategy adapted to the local context
  • Realistic financial projections for 3 to 5 years
  • A competitive analysis and your competitive advantage

2. A Strong Management Team

Highlight the experience and skills of your management team. If possible, include members with experience in the Qatari or Middle Eastern market.

3. A Unique Value Proposition

Clearly explain what makes your business unique and how it meets the specific needs of the Qatari market.

4. Proof of Traction

Present key performance indicators (KPIs) demonstrating your company’s growth and potential. This can include customer numbers, revenue, strategic partnerships, etc.

5. An Exit Strategy

Investors will want to understand how they can achieve a return on investment. Present different potential exit scenarios (acquisition, IPO, etc.).

Good to Know:

It’s recommended to have your documents translated into Arabic, Qatar’s official language, in addition to English. This will show your commitment and facilitate communication with local investors.

Captivate Your Audience: The Art of the Perfect Pitch to Win Over Qatari Investors

Once your package is ready, it’s time to present it to potential investors. Here are some tips for a successful pitch in Qatar:

1. Adapt Your Presentation to the Local Culture

Familiarize yourself with Qatari cultural norms and business practices. For example, it’s important to show respect to elders or those in senior positions.

2. Emphasize Added Value for Qatar

Explain how your business will contribute to Qatar’s economy and align with the objectives of Qatar National Vision 2030, which aims to diversify the economy and promote innovation.

3. Prepare a Compelling Pitch Deck

Create an attractive visual presentation that summarizes the key points of your business plan. Ensure it’s clear, concise, and visually appealing.

4. Practice Your Pitch

Practice presenting your project convincingly and concisely. Be prepared to answer difficult questions and defend your vision.

5. Networking and Introductions

Use your network and attend professional events to get introductions to potential investors. Personal relationships are very important in Qatari business culture.

Good to Know:

The Qatar Business Incubation Center (QBIC) regularly organizes pitch events and acceleration programs that can help you refine your presentation and meet investors.

The Art of Negotiation: Get the Best Terms for Your Business

Once you’ve sparked investor interest, it’s time to negotiate the funding terms. Here are some key points to keep in mind:

1. Understand Different Types of Investment

Familiarize yourself with common investment structures in Qatar, such as equity stakes, convertible loans, or bonds.

2. Properly Value Your Business

Have a clear idea of your business’s value and be ready to justify it. Use recognized valuation methods and compare with similar companies in the region.

3. Negotiate Beyond the Amount

Don’t focus solely on the investment amount. Also consider other important aspects such as:

  • Governance and control rights
  • Exit and liquidity clauses
  • Access to the investor’s expertise and network
  • Future funding conditions

4. Be Patient and Flexible

Negotiations can take time in Qatar. Be patient and ready to compromise, while remaining firm on your essential points.

5. Get Expert Support

Don’t hesitate to engage lawyers and financial advisors experienced in Qatari transactions to guide you through the negotiation process.

Good to Know:

The Qatar Financial Centre (QFC) offers a world-class legal and regulatory framework for businesses, which can facilitate structuring your investment agreement according to international standards.

Cultivate the Relationship: The Importance of Post-Investment Follow-up

Once funding is secured, it’s crucial to maintain a strong relationship with your investors. Here’s how to ensure effective follow-up:

1. Communicate Regularly

Keep your investors informed about company progress through monthly or quarterly reports. Be transparent about both successes and challenges encountered.

2. Involve Your Investors

Leverage your investors’ expertise and network. Seek their advice and help to overcome obstacles and seize new opportunities.

3. Honor Your Commitments

Ensure you meet the objectives and milestones defined in your investment agreement. If adjustments are needed, communicate them proactively.

4. Prepare for Next Steps

Anticipate future funding needs and keep your investors informed of your long-term growth plans.

5. Build Trust

In Qatari culture, trust and personal relationships are paramount. Invest time in building strong relationships with your investors beyond purely financial aspects.

Good to Know:

Many Qatari investors appreciate companies that contribute positively to society. Consider integrating corporate social responsibility (CSR) initiatives into your strategy to enhance your appeal.

Raising funds for your business in Qatar can be a complex but extremely rewarding process. By understanding the local ecosystem, preparing a strong package, mastering the art of pitching, and negotiating skillfully, you’ll maximize your chances of success. Remember that funding is just the beginning of the journey – cultivate lasting relationships with your investors to ensure the long-term success of your business in this dynamic and growing market.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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