Overview of the Ithmar “Seed Fund” product
■ Ithmar product aims to support economic diversification by providing seed capital to Qatari entrepreneurs to start and build their businesses. The newly launched, first of its kind in Qatar, Seed funding product is set to play a significant role in developing private sector business opportunities for Qataris.
■ The program aims to build a new generation of Qatari entrepreneurs by enriching the culture of investment among younger generations. The program is an integrated and comprehensive approach that provides entrepreneurs with the required funds to establish a business in Qatar.
■ Ithmar product is a Shari'a compliant equity product that is structured through a convertible Musharaka agreement. QDB and the client will merge their capital with the aim of making profit, whereby the funding will be done through convertible Musharaka contract that can later be converted into shares. The trigger for conversion is at the completion of the 2 years mark (with a valuation cap) or at the next qualifying funding round (with a minimum value). The convertible Musharaka contract is automatically renewed on annual basis. Post conversion into shares, it will follow QDB’s existing SME Equity Program criteria and process.
■ QDB will finance up to 90% of the project (10% financed by the entrepreneur) and with a maximum ticket limit of QAR 0.9M
■ The target market is Qatari individuals or teams with active Qatari members who are above 18 years old, and it will follow a sector agnostic approach (except for trade, real estate and contracting), with a focus on innovative sustainable and scalable businesses.
The journey of your application (click to view in full screen)
How to apply (click to view in full screen)
Comparison with Loans (click to view in full screen)