Venture Capital Firms and Funds in the Middle East Key Terms

Learn more about how venture capital firms operate in the Middle East

By Elise Matz, Writer Speaking Term Productions

Venture capital (VC) funds are designed to build up businesses, and in recent years they have begun to do just that in the Middle East. For years, as fledgling companies in the United States and Europe drew big investors, the Middle Eastern market was largely untouched. Today, venture capital firms from around the globe are making up for lost time, investing in promising new technologies the region has to offer.

Golf Corporation Council (GCC) countries

If a VC firm says it works in Golf Corporation Council (GCC) countries, it means that it has partners in Saudi Arabia, the United Arab Emirates or the Sultanate of Oman.
Try: Visit the GCC to read about the organization's mission and see a full list of member countries.

Middle East and North Africa (MENA)

MENA countries include all the countries under the GCC and many others, including Iraq, Yemen, Morocco, Syria and Algeria.
Try: Visit the International Finance Corporation to find out more about how the organization is working to promote economic growth in the MENA region.

Islamic Sharia or Sharia Islamic law

Some VC firms operating in the Middle East are sensitive to Islamic Sharia, a code drawn from the Koran and the teachings of Mohammad. Among other things, Sharia sets guidelines for finance. It prohibits making money from lending money, instead encouraging trade and investment.
Try: The BBC provides a helpful summary of Sharia Islamic law as it pertains to finance.

Golf Venture Capital Association (GCVA)

The GCVA is a non-profit trade group that represents venture capital firms in Golf Countries. It's ultimate mission is to encourage risk-taking business ventures in the region.
Try: Check out the GCVA to learn more about its programs and mission.

Private equity (PE) and venture capital (VC)

Venture Capital is a pool of money available for investment in new companies that want to take a risk on a developing technology. Private Equity refers to securities that are privately traded, rather than publicly held.
Try: The National Venture Capital Association outlines how VC works, and the Private Equity Council explains PE in depth.

Limited partners (LPs) and general partners (GPs)

General partners are fully liable for a business they invest in, and are often involved in running everyday affairs. Limited partners are somewhat shielded from liability.
Try: Investopedia explains the roles of limited partners and general partners in business and investment.