MENA-focused impact venture capital firm Anara Impact Capital has announced the first close of its debut fund at $48 million, bringing it close to its target fund size of $50 million. The fund will invest in Seed and Series A startups across the Middle East and North Africa (MENA), with a focus on businesses addressing critical regional challenges through scalable and commercially viable solutions.
The fund will target startups operating across learning, wellbeing, financial access, and climate sectors, supporting founders building solutions that deliver both strong financial returns and measurable social and environmental impact.
The first close was anchored by a consortium of institutional and regional investors, including the German development bank KfW, acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission, alongside Dara Holdings, the Innovative Startups and SMEs Fund (ISSF), and several prominent family offices and high-net-worth individuals from the region.
Anara Impact Capital was spun out of Alfanar Venture Philanthropy, a UK-based organization with more than two decades of experience supporting impact-driven enterprises across the Arab world. The new venture fund builds upon Alfanar’s legacy while focusing on scaling businesses capable of generating both meaningful impact and attractive financial returns.
Addressing Funding Gaps in Critical Sectors
Anara’s investment thesis is rooted in the belief that several sectors vital to the region’s long-term development remain significantly underfunded despite offering substantial growth opportunities.
The fund will focus on three core investment pillars:
- Learning: Expanding access to education, skills development, employability, and economic mobility.
- Wellbeing: Improving access to financial, mental, and physical wellbeing solutions.
- Climate: Supporting innovations that help communities and systems adapt to, mitigate, and respond to climate-related challenges.
The firm aims to back companies that have demonstrated early traction, possess strong founder-market fit, and show significant potential for regional and global scale.
Experienced Leadership and Governance
Anara Impact Capital is led by Managing Partners Nafez Dakkak, Mohamed Hussain, and Nadia Moukaddam, who collectively bring extensive experience across venture capital, venture building, operating roles, investment advisory, and impact investing.
The fund also benefits from a strong governance framework, with Fadi Ghandour serving as Chair of the Investment Committee, supported by a network of experienced investors, operators, and ecosystem leaders from across the region and internationally.
Commenting on the milestone, Nafez Dakkak, Managing Partner at Anara Impact Capital, said:
“Anara is here to prove that the region can develop scalable and global solutions to the most pressing challenges of our time. We are inspired both by the founders we are supporting and our own investors who are pioneering the way for intentional capital across the region. We are on a mission to show that impact and returns can and do go hand in hand.”
Thomas Reker, Portfolio Manager at KfW Development Bank, emphasized the importance of supporting purpose-driven enterprises across the region.
“Bridging the financing gap for purpose-driven enterprises is essential for the sustainable development of the MENA region. By anchoring this fund on behalf of the German Government and the EU Commission, our goal is to drive meaningful job creation and empower visionary entrepreneurs who are building solutions that help address shortcomings in society or the environment.”
He added that the initiative is particularly focused on supporting social entrepreneurship, a segment that often faces significant challenges in accessing traditional financing.
Meanwhile, Lubna Olayan, Chairwoman of Alfanar Venture Philanthropy, highlighted the untapped entrepreneurial potential within the region.
“There is a depth of entrepreneurial talent across the region that is often underestimated. When directed toward Anara’s core pillars – learning, wellbeing, and climate – this talent can generate not only strong and sustainable returns but also meaningful and lasting impact.”
The successful first close reflects growing investor confidence in impact-driven venture capital across MENA and underscores increasing demand for investments that combine commercial success with positive societal outcomes.
