The Bahrain Development Bank (BDB) has launched a $100m Venture Capital Fund of Funds to support start-ups in Bahrain and the rest of the region.

The Al Waha Fund of Funds will invest in venture capital funds that have a presence in Bahrain.

“This is very exciting news for the startup ecosystem both here in Bahrain and across the Middle East. We know that access to capital is one of the biggest constraints on growth for startups, so this fund will help businesses in Bahrain and across the Middle East to get access to the capital they need to expand,” says Khalid al-Rumaihi, chairman, BDB.

“Venture capital investment in the Mena region is a fraction of the level in markets like the USA and China – this means there are entrepreneurs with great ideas that are not realising their potential because they cannot access the funding required. We are delighted to be able to utilise the strengths of Bahrain as a regional financial centre and its growing startup ecosystem to support the growth of a new wave of innovative businesses across the region.”

As well as providing additional capital to regional startups, Bahrain expects the fund to help attract additional venture capital funds to the kingdom, enhancing the local startup ecosystem.

The fund was launched at Gateway Gulf investor forum in Manama on 10 May. There were $26bn of infrastructure projects showcased at the event including investment-ready projects worth $18bn, with another $8bn of projects in the planning stages.