Qatar's venture market grew quickly in 2025. Total VC funding reached QAR 214 million, up 81% on the year, across 33 deals, and 93% of those deals were at pre-seed or seed stage, according to the QDB and MAGNiTT data cited by Gulf Times on 24 October. Qatar Development Bank (QDB) itself committed more than QAR 350 million in direct and indirect investments and backed more than 60 startups. Most founders know QDB as a funder. Fewer local angels know that two of its programmes are designed for them: one puts QDB money next to theirs, and the other caps how much they can lose. With the market this concentrated at the earliest stages, these two tools are worth understanding before your next cheque or your next round.

Two programmes, two different problems

The programmes solve different problems, and it helps to keep them apart.

  • The Co-Investment Program solves for cheque size. A private investor leads the deal and does the work, and QDB adds capital alongside them, so the round closes with less money from the private side.
  • The Partial Guarantee Investment Program solves for downside. The investor funds the round, and QDB guarantees part of the principal against loss for a fixed period, for a fee and a share of the upside.

Both programmes rely on the private investor to find the company and carry out due diligence. Neither is a route for a founder to apply alone.

How the Co-Investment Program works

QDB describes the Co-Investment Program as the first of its kind in Qatar. Its stated purpose is to let private investors commit less capital while having a similar impact, with QDB supplying the rest. QDB co-invests up to QAR 11 million per deal, and there are no application fees.

Who qualifies as an investor. The applicant must be a certified investor. QDB's primary test is either a minimum net asset value of QAR 2.6 million or a minimum annual income of QAR 550,000. Applicants must also meet one of several secondary criteria, such as prior investing experience as an individual, company or fund; a relevant professional background (entrepreneur, founder, family business, investment banker); an existing VC certification or accreditation; recognition by an angel network or investment club; or previous experience of an exit as an investor or founder.

Which companies qualify. Early-stage startups and SMEs based in Qatar and focused on high-tech or innovative technologies, with at least a ready minimum viable product. QDB says high-growth companies may be preferred, and looks for a deep understanding of the target market and the potential for a lasting competitive advantage.

The process. The investor picks the company and completes its own due diligence, then asks QDB to approve a co-investment to close the round. The investor and the company must already have signed an investment or pre-investment agreement, which goes in with the application along with the pitch deck and business plan, financial statements or management accounts, incorporation details, founder backgrounds and, at QDB's discretion, the investor's due diligence pack. QDB may run its own additional checks. After approval, funds go directly to the company's corporate account and QDB's investment team reviews the investment monthly.

How the Partial Guarantee Investment Program works

Under the Partial Guarantee Investment Program, QDB acts as an independent guarantor and covers part of an investor's principal loss. Introduced in late 2024 and detailed publicly in March 2025, it is aimed at individual investors, investment groups, clubs and local funds, according to Gulf Times. The key terms on QDB's programme page are:

  • Coverage: up to QAR 1.825 million (USD 500,000) per investment round, capped at 50% of the investment value or 33% of the total round, whichever is lower.
  • Duration: up to three years, or a period set case by case by QDB's Investment Committee.
  • Cost: an annual administrative fee of 1% of the guaranteed amount, backed by post-dated cheques.
  • Upside share: at exit, the investor pays QDB 20% of the profits.
  • On a claim: the investor waives all of their rights in the company in favour of QDB.

Who qualifies. Investors must be accredited individuals, accredited groups or investment clubs registered in Qatar, with no role in the management, ownership or founding of the company and no conflict of interest. Companies must be based in, or headquartered and operating in, Qatar; technology-focused, high-growth SMEs in QDB's priority sectors; led by a qualified team; and not already in QDB's portfolio. The programme FAQ also says target companies must comply with Islamic Sharia, a point the main programme section does not repeat, so confirm it with QDB at the start.

Proof that the funds have been transferred is required before QDB issues the letter of guarantee. Because the cap is the lower of the two percentages, the protection is smaller than it first appears. On a QAR 1 million cheque into a QAR 2 million round, for example, 50% of the investment is QAR 500,000 and 33% of the round is about QAR 660,000, so the cover is QAR 500,000. If the same QAR 1 million is the whole round, the 33% cap applies and the cover falls to about QAR 330,000.

The trade-offs to weigh

The following points are general guidance for investors, not QDB policy.

  • The guarantee is insurance, not a subsidy. You pay 1% a year whether or not the company succeeds, and you give up 20% of the profit if it does. Model both outcomes before you apply.
  • Claiming ends your position. Because a claim transfers all your rights to QDB, it suits clear write-off scenarios rather than a company that is struggling but may recover.
  • The clock matters. Cover lasts up to three years, while early-stage outcomes often take longer. Know what happens if the company is still alive but impaired when the guarantee expires.
  • Co-investment brings a second shareholder with its own process. Monthly monitoring by QDB is a governance benefit, but founders and lead investors should agree reporting duties early so they do not slow the company down.
  • Your diligence is the gate. Both programmes rely on the investor's own work. A thin data room will slow approval, so treat it as the standard you would want from a co-investor.

What founders can do with this

Founders cannot apply to either programme directly, but they can use them to help close a round. If an angel is interested but hesitant about cheque size, the Co-Investment Program can stretch their commitment. If an investor is nervous about risk, the guarantee can bring them in. Prepare the documents QDB requires (deck, business plan, accounts, incorporation papers and founder profiles) before the conversation, so that an interested investor can move straight to an application. Companies already in QDB's portfolio are excluded from the guarantee, so plan which instrument fits your round. For debt-side support, see our guide to QDB's Credit Guarantee Program and TAMKEEN.

The Vision 2030 and NDS3 connection

Qatar National Vision 2030 calls for a diversified, private-sector-led economy, and the Third National Development Strategy (NDS3) puts private-sector empowerment and technology sectors at its core. Launching the guarantee programme, QDB CEO Abdulrahman Hesham Al-Sowaidi said it "aligns with the objectives of the Third National Development Strategy" and that the aim is to balance encouraging venture investment with reducing the risks that deter it (Gulf Times). The programmes complement Startup Qatar's investment track: the Startup Qatar Investment Programme has invested more than QAR 138 million in over 35 companies, and in 2025 its limits rose to QAR 4 million for early-stage companies and QAR 20 million for expansion-stage companies (Gulf Times). Public money attracts companies; programmes like these are meant to bring local private capital in alongside it.

What to do next

  • Angels: check yourself against the certified-investor tests (QAR 2.6 million net assets or QAR 550,000 income, plus one experience criterion) before you need them.
  • Lead investors: build a diligence pack you would be comfortable handing to QDB, and get the investment agreement signed before applying.
  • Guarantee users: calculate the real cover (the lower of 50% of your cheque or 33% of the round) and the full cost, including the 20% profit share, before committing.
  • Founders: raise both programmes early with interested investors, and keep the required documents ready.
  • Everyone: confirm current terms, including the Sharia-compliance point, with QDB through its website before you sign.

Sources

Photo: Pixabay / Pexels

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