SME Equity Program
The SME Equity Program aims to support economic diversification by providing growth capital to Qatari entrepreneurs.
The first of its kind and largest in Qatar at a size of QAR 365 million.
The program will deploy investments in innovative small enterprises and high-growth potential medium enterprises to support value creation.
 
Objectives:
 
  • Provide Capital: provide capital to SME’s actively owned/managed by Qataris across industries.
  • Foster Entrepreneurship: breed innovation and encourage formation of new ventures in Qatar to contribute to the country’s aspiration to build knowledge based economy.
  • Build Capabilities: build capabilities and network to accelerate Qatari SMEs to world class standards and increase probability of successful development.
  • Create Sustainable Returns: generate value neutral returns that can be re-invested in subsequent programs.
 
Investment Strategy:
 
Characteristics:
 
  • Size: QAR 365 million.
  • Target allocation: 20% in innovative small enterprises and 80% in growth medium enterprises (all Qatari owned and with active involvement of Qataris in management).
  • Program term: 8-10 years (5 years for deployment and 3-5 years holding period).
  • Geography: Qatar.
  • Industry: Sector-agnostic approach focused on supporting viable businesses with preference for strategic sectors (except construction, contracting and trade).
  • Target shareholding: less than 50% stake.
  • Equity buy-back option: with pre-determined conditions for entrepreneur to buy it back from the program.
  • Ticket size: QAR 1.5 – 7 million and QAR 3.5 – 18 million for innovative small enterprises and growth medium enterprises respectively, although exceptions will be reviewed on a case-by–case basis.
 
Value and Support:
 
  • Voting rights: seat on board, “say” on critical decisions, corporate governance, and close cooperation with the entrepreneur.
  • Value generation: 100 day post-investment plan, growth plan management, implementation of best practices, providing contacts in wider QDB/Qatari ecosystem.
 

Investment Criteria:

The investment criteria differs depending on whether you are an innovative small enterprise or a growth medium enterprise.

The criteria is:

 

Innovative Small Enterprises:

  • Qatari owned operational company.
  • Active Qatari involvement.
  • Growth and expansion plan.
  • Value generation potential.
  • Scalable model.
  • Potential to build sustainable competitive advantage.
  • Number of employees less than 250.
  • Total turnover less than QAR 100 million.
  • Total assets less than QAR 50 million.
  • Operational for less than 3 years.

 

Growth Medium Enterprises:

  • Qatari owned operational company.
  • Active Qatari involvement
  • Successful management track record.
  • Successful financial track record.
  • Growth and expansion plan.
  • Value generation potential.
  • Scalable model.
  • Potential to build sustainable competitive advantage.
  • Number of employees less than 250.
  • Total turnover less than QAR 100 million.
  • Total assets less than QAR 50 million.
  • At least 3 years of financial statements.

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Apply here for SME Equity Program