Qatar Joins Abu Dhabi's Shorooq in $200M Fund Targeting Gulf's Late-Stage Startup Gap
In a significant move for the Gulf's venture capital landscape, Abu Dhabi-based Shorooq Partners has secured $200 million for a new fund aimed at late-stage and pre-IPO companies, with the Qatar Investment Authority (QIA) coming on board as a key investor for the first time.
The fund, announced during the Web Summit Qatar, seeks to address a persistent bottleneck in the region's startup ecosystem: the scarcity of structured, patient capital for scaling companies poised for public markets. QIA's participation is part of a broader $3 billion venture fund-of-funds strategy by the Gulf state.
"The most compelling opportunities now lie with companies that have validated their business models but require sophisticated capital to professionalize operations and achieve the scale expected by public investors," said Mahmoud Adi, Shorooq's Founding Partner. He highlighted target sectors including fintech infrastructure, enterprise software, and AI-driven solutions serving critical regional needs.
The commitment signals growing cross-GCC collaboration in venture capital. Shorooq, which also counts Saudi Arabia's PIF and Abu Dhabi's Mubadala as backers, will establish a new office in Doha. The firm now oversees over $1 billion in assets across various alternative investment strategies.
Analyst & Investor Commentary:
"This is a strategic, necessary injection of capital," said Raya Al-Mansoori, a Dubai-based venture analyst. "The series B/C gap has stalled many promising Gulf startups. This fund provides a runway for those with solid unit economics to reach IPO readiness."
"Finally, some sense in the market," remarked Thomas Finch, a seasoned fund manager in Riyadh. "The 'growth at any cost' era is over. This fund's focus on profitability, governance, and real revenue aligns with what public markets actually reward. It's a maturation signal for the entire ecosystem."
"Let's not overstate the impact," countered Karim Said, an outspoken tech blogger. "$200 million is a drop in the ocean for the region's needs. While the QIA link is politically interesting, this fund risks just propping up a handful of already-privileged startups instead of fostering genuine, broad-based innovation. It's more about financial engineering than building transformative companies."
"The cross-border nature is promising," added Leila Chen, a Singapore-based investor with GCC interests. "Seeing Qatari and Emirati capital align in a dedicated late-stage vehicle could attract more Asian institutional investors looking for de-risked entry points into the MENA growth story."