Abu Dhabi VC EQIQ to increase Iraq tech investments

Abu Dhabi technology-focused venture capital fund EQIQ says it plans to increase the value of its investments in Iraq as the country seeks to recover from more than four decades of war and economic sanctions.

Last year, tech startups in Iraq raised less than $3 million in 10 deals, according to entrepreneurship ecosystem development platform Wamda. That puts it far below smaller neighbouring economy Jordan ($15 million) and is a drop in the ocean to Saudi Arabia’s $700 million.

Iraq’s investment needs are huge. Once – in the 1970s – one of the more developed economies in the Middle East, the country of 45 million is looking to rebuild and update now that it is relatively peaceful. Though declining, unemployment is still at about 13 percent and, among recent graduates, much higher.

“The country is underserved in many sectors,” says Mohamed Al-Hakim, founder of EQIQ and the former CEO in Iraq of Middle East ride-hailing company Careem.

“Capital has been scarce as investors have been cautious to enter a market they know little about.”

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Iraq has previously been called a “hidden gem” for investors, but the country’s startups still  struggle to raise the money they need to grow. 

Among those able to secure funding, iQ Cars – Iraq’s largest online car marketplace platform – said in April it raised seven-figure funding.

EQIQ has deployed almost $9 million in five startups in Iraq and plans to invest an additional $15 million, it says. The company targets the ecommerce, logistics and financial technology sectors.