Calling all entrepreneurs

Qatar is emboldening its startup space using incentives and innovation, writes Zainab Mansoor

Qatar is making considerable strides to station itself among entrepreneurial hotspots within the region. While the startup landscape of the country may still be relatively nascent in comparison to its regional peers, it is undertaking concerted efforts to beckon local talent towards entrepreneurship and innovation.

Initiatives undertaken by public and private entities are prompting a surge in incubators, accelerators and startups. Qatar FinTech Hub, founded by Qatar Development Bank to support the growth of the local fintech industry, offers incubator and accelerator programmes as well as hackathons. Meanwhile, Qatar Science and Technology Park (QSTP), a freezone, accelerator and incubator for tech-product development, offers multiple innovation programmes such as the Research to Startup programme, XLR8 and the Arab Innovation Academy, as well as an incubation centre. Among its multiple initiatives, QSTP announced a partnership with technology firm Microsoft last month to enhance the working environment for startups in the country, as well as rendering those incubated at QSTP eligible for the Microsoft for Startups programme.

Besides playing host to the FIFA World Cup next year – which will be a shot in the arm for Qatar and its strategic goals – efforts are also being made to back innovative and promising sportstech companies. Earlier this year, startup accelerator Qatar SportsTech (QST), founded by Qatar Development Bank, announced the completion of the fourth cohort of its accelerator programme, and opened applications for the second edition of its pre-accelerator programme EntelaQ – which is aimed at local entrepreneurs, nationals and residents with a sportstech idea or prototype.

The numbers share the optimism too: According to MAGNiTT’s 2020 Qatar Venture Investment Report, startups in Qatar raised QAR22m in 2020, up from QAR21m in 2019. F&B and e-commerce secured 23 per cent and 20 per cent of the total funding in 2020 respectively, while accelerated programmes were responsible for 33 per cent of all transactions across the country’s venture investment ecosystem.

Additionally, funding into early-stage startups increased with dwindled concentration of capital in larger deals. The share of the five largest deals in venture investment dropped from 78 per cent in 2019 to 63 per cent in 2020, providing other transactions access to more funds, the report added.

Meanwhile, the need for digitalisation last year made an impact on the e-commerce and home services sectors. “E-commerce startups saw 40x more funding year-on-year, contributing 20 per cent of the total capital deployed in Qatar in 2020. Meanwhile, the number of startups to raise funding from the home services sector went from one in 2019 to three in 2020,” the MAGNiTT report added.

Realising the potential, several startups have sprung up to leverage the opportunities and serve the burgeoning landscape. Complemented by consolidated efforts by private and public entities and a growing entrepreneurial spirit, Qatar is pacing ahead to develop an entirely new generation of business leaders.