Panellists share insights during the session at Web Summit Qatar 2024.
Doha, Qatar: The Middle East has become increasingly important region for venture capitalists in the recent years which are due the regions burgeoning population, rapidly growing economies, and increasing levels of entrepreneurship.
Experts highlighted the role of Middle Eastern funds in the global economy in a panel discussion at the Web Summit Qatar 2024. Speaking at the session, Mohammed Al Sowaidi, Chief Investment Officer – Americas QIA said, “In this region a lot of policymakers are finding out that with time we have to privatise more and have more and more reliance on privately owned businesses or international businesses. At the same point of time a lot of policy improvements have been happening and will continue to happen and you have also favourable demographics.”
“So I think all these improvements make us, as a fund to continue to invest domestically and think about and improving innovation and contributing to it positively. We announced a sizable commitment of $1bn commitment for Fund of Funds programme to focus on funds that will establish precedence in the Middle East and we believe Qatar is quite competitive for that,” he added.
Al Sowaidi noted that the central location for the Middle East is actually quite interesting and at the time where you have a lot of geopolitical frictions and things to be stabilised, “I think the Middle East can play a vital role in the middle."
For her part, Noor Sweid, Founding and Managing Partner, Global Ventures said, “Last year there was about $2.6bn deployed across Mena and venture funding and the year before was our peak year at $3bn. I don’t think that there is a huge political influence in the venture funding ecosystem. I think the region remains very strong. We invest across the Middle East and Africa, so the region remains 1.9 billion people, we can’t ignore that for under the age of 30, it’s a growing demographic.
“We find ourselves in a position where you have a growing demographic, a rising population of 85 percent digital penetration and growing economies that are attractive to the whole world. And we’re sitting in the middle of it.
Khaled Talhouni, Managing Partner, Nuwa Capital said, “I think we are very positive on the underlying macro trends that are driving our region between demographics, overall economic diversification, liberalisation of our economies, like big improvements in terms of the regulatory environment. So the net affects are overwhelmingly positive, and while there is some geopolitical headwinds, I think that’s par for the course in emerging and developing markets.”
“I think it’s very important for us to take stock of the very long term trajectory.
I think, if you compare it to four or five years ago, the availability of venture capital was quite limited, the institutional allocators were not investing locally, the depth of the talent pool of founders was a fraction of what it is today, and if you fast forward, if you look at if you look at the trajectory in five to ten year increments, it’s a sea change, It’s an entirely different ecosystem. I think you’re seeing huge outcomes,” he added.
