Anara Impact Capital, an impact venture capital firm investing across the Middle East & North Africa, today announced the first close of its debut fund at $48 million, marking a significant milestone toward its $50 million target fund size.
The fund will invest in Seed and Series A startups focused on learning, wellbeing, financial access, and climate, each of which is central to the region’s long-term development.
The fund aims to back companies that can deliver both strong financial returns and measurable impact within their communities.
The first close is anchored by a landmark coalition of institutional backers, including KfW, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission; Dara Holdings; ISSF (Innovative Startups and SMEs Fund); and a number of leading family offices and high-net-worth individuals from the region.
Anara Impact Capital was spun out of Alfanar Venture Philanthropy, a UK-based organisation with more than 20 years of experience supporting impact enterprises across the Arab world. Anara builds on Alfanar’s work with a particular emphasis on scaling businesses that can generate impact and strong financial returns.
The launch of the fund builds on Alfanar’s legacy and reflects growing demand for investment in sectors with strong commercial potential and clear social and environmental relevance.
Backing Founders in Underfunded Sectors
Anara’s investment strategy is grounded in the conviction that key sectors across the region remain persistently underfunded, despite representing some of its largest long-term opportunities.
The fund’s investment objectives will focus on the following pillars:
• Learning: expanding access to education, skills, employability, and economic mobility • Wellbeing: improving access to financial, mental, and physical wellbeing solutions
• Climate: helping communities and systems adapt to, mitigate, or respond to climate related pressures
A Differentiated Regional Strategy
The fund targets businesses with proven early traction, strong founder-market fit, potential to scale, and a commitment to positive change in the region.
The fund is led by Nafez Dakkak, Mohamed Hussain, and Nadia Moukaddam. Together, they bring experience across venture capital, venture building, operating roles, investment advisory, and impact investing.
Anara also benefits from a strong governance and advisory platform. Fadi Ghandour chairs its Investment Committee, supported by a seasoned group of operators, investors, and ecosystem leaders from across the region and beyond.
Nafez Dakkak, Managing Partner 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, KfW Development Bank, said:
“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. This initiative is particularly committed to supporting social entrepreneurship—a vital sector that traditionally faces severe hurdles in securing conventional financing. Investing in Anara is an investment in a future where economic opportunity and strong social impact go hand in hand.”
Lubna Olayan, Chairwoman, Alfanar Venture Philanthropy, said:
“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.”
