Iraqi Islamic Bank Partners With MSA Novo To Fund Tech Startups in Iraq
Iraq boasts a young, technology-savvy, well-educated consumer base with relatively high purchasing power. Yet these individuals struggle against the challenges imposed by outdated or broken infrastructure and fragmented supply chains. Into this void steps Iraq Islamic Bank (IIB) and MSA Novo (MSA), with YAG Capital (YAG) as senior advisor for this partnership, to launch a fund to invest in tech-focused startups in Iraq. The size of the fund has not yet been determined but the targeted sectors include core logistics, payments infrastructure layers, consumer technology platforms and enterprise enablers.
Under these conditions, it is paramount to not just invest in startups but directly engage in building companies which merge the technical capabilities and global best practices aggregated by MSA with the local market knowledge and execution capabilities of IIB. This vehicle is historically the first endeavour of this nature established for Iraq and the largest pool of capital ever aggregated for investment into the technology ecosystem in the country. This initiative aims to not only create value for its investors and the shareholders of IIB but will also kickstart the innovation flywheel in the market. By funding, building, and mentoring the next generation of Iraqi business leaders, this endeavour seeks to lay the foundations for the country’s long-term economic and social success.
The fund is already among the active investors in Iraq, having co-led the most extensive funding round in Iraqi tech startup history with the super app, Baly. Targeted investment sectors will be core logistics and payments infrastructure layers, consumer technology platforms and enterprise enablers.
We are delighted to work with our partners to support entrepreneurship in Iraq. By collaborating on this initiative to support local businesses, we will strengthen the economy, generate employment, stimulate innovation and add value to the SME sector, the backbone of the local economy. We are well placed to comprehend the challenges faced by local entrepreneurs in the volatile market, and we will guide, support and create added value to ensure their ventures are fruitful.Ahmed W Ahmed, Iraqi Islamic Bank Chairman
Commenting on the announcement, MSA Novo Managing Partner Ben Harburg said: “We are excited to partner with IIB as we seek to utilise our global experience, lens, and technology to identify and build the leading technology companies to address the highly attractive Iraqi market.”
YAG Capital Chairman Yazen Abu Gulal said: “This partnership will have many tangible advantages for the Iraqi digital economy, including increased efficiency, better productivity, reduced costs, improved communication and transparency. We believe in empowering, supporting and championing young entrepreneurs in Iraq to drive innovation and lead the digital revolution for the local economy.”
Original article can be read here by Wamda.