UAE-Based Nahda Capital Partners Targets US$300 Million For Inaugural GCC Private Equity Fund

UAE-based Nahda Capital Partners has filed for the registration of its inaugural private equity fund in the Abu Dhabi Global Market (ADGM) as it prepares to begin investment activities across the GCC.

Subject to regulatory approval, Nahda Capital Partners expects to commence fundraising in the coming weeks, targeting approximately US$300 million for the fund. The firm plans to concentrate on sectors including food production and distribution, healthcare, education, and industrial technology. Its investment approach follows principles aligned with Sharia-compliant investing, including a focus on real-economy assets, prudent use of leverage, and disciplined governance. 

Nahda Capital Partners, which was incorporated in ADGM in October 2025, is developing a control-oriented mid-market private equity strategy focused primarily on the UAE, Saudi Arabia, and the wider GCC region. Nahda, which means "renaissance" in Arabic, reflects the firm’s stated focus on supporting the development of the region’s real economy and building partnerships with local founders, family offices, and institutions. 

In an interview with Inc. Arabia, Nahda Capital Partners founder and Managing Partner Iñigo de Luna described the thinking behind establishing the fund at this stage in the region’s economic development. “Nahda Capital Partners has been planned for a long time," de Luna said. "We have been building the platform, governance, and regulatory foundations deliberately, and we are launching because we believe the GCC is in a multi-year phase where disciplined, control-oriented private equity can help build stronger companies. The gap we see is mid-market control capital combined with hands-on operational value creation. The region has deep pools of capital, but there is still a shortage of institutional partners for founder-led and family-owned businesses that want to professionalize, strengthen governance, build management depth, and expand regionally. We aim to partner with high-quality founders and families, bring institutional discipline, and help build resilient regional champions.” 

While the ADGM entity represents a newly established platform, the leadership team’s experience in private equity investing spans multiple cycles and geographies. “We are launching our first fund from the UAE, but we are not new to private equity," de Luna revealed. "The founding partners have managed funds and invested through multiple European cycles, with a historical track record of approximately 36 percent gross internal rate of return. Our investment committee has, on average, around 30 years of professional experience making investment decisions and governing businesses. What we are building in ADGM is a new, regulated platform, but the investing discipline and operating approach are well-proven." 

de Luna also shared that Nahda Capital Partners intends to pursue majority investments in founder-led and family-owned companies that continue to see structural growth and increasing institutionalization across the region. It is particularly interested in businesses undergoing generational transitions or seeking institutional capital and operational support to expand across the GCC. The company's strategy centers on partnering with founders and family shareholders, while also implementing an operational framework focused on professionalization, operational improvement, governance strengthening, and selective buy-and-build expansion. 

According to de Luna, while the current geopolitical climate in the region may add complexity to capital raising efforts, he suggested that these conditions are a test of investment discipline and institutional credibility. “Fundraising is never easy, and it is more demanding in a volatile environment," he said. "That said, difficult periods create both threats and opportunities. Serious investors focus on whether a manager has a repeatable sourcing engine, a control model that can improve businesses, and institutional-grade governance, reporting, and alignment. We address this by being transparent and process-driven. We are building an ADGM-based platform designed to meet institutional expectations, and we are disciplined on pacing. We would rather build a concentrated base of high-conviction partners, execute with consistency, and scale from results than optimize for speed.” 

However, de Luna does acknowledge that, at the company level, businesses across the region may encoutner near-term pressures tied to geopolitical tensions and shifts in sentiment. “These are difficult days, and the priority is safety and de-escalation," he said. "In the near term, some businesses may face cautious sentiment, disruption to travel and logistics, and a higher risk premium. The key is how companies respond after the initial shock. Private equity can play a constructive role by being patient, operational, long-term capital. In periods like this, the differentiator is not financial engineering. It is governance, execution discipline, and liquidity and working capital management. A good private equity partner can support management teams with scenario planning, operational key performance indicators, procurement and cost actions, and selective strategic moves when others hesitate. The GCC’s structural strengths remain intact and well-run companies tend to emerge stronger after shocks.” 

Looking further ahead, de Luna expressed confidence that the GCC region’s foundations will continue to attract capital and support long-term business development. “The GCC continues to strengthen structurally as a place to build businesses and allocate long-term capital," he said. "Growth, policy execution, and institutionalization are progressing faster than in many mature economies. At the same time, many advanced economies are constrained by weak real growth and high debt burdens, particularly in the US and parts of Europe, which reduces policy flexibility in the next global downturn. In contrast, the GCC has stronger balance sheets and a clear commitment to stability, de-escalation, and investment-friendly frameworks. In my own conversations with local friends and with expatriates, I am also seeing a growing sense of unity, confidence, and pride in how the UAE is managing an extremely difficult situation. Over time, that kind of confidence tends to translate into higher domestic and regional allocation, and a preference to build and invest closer to home. In that sense, the concept of Nahda, a renaissance, is not just a name. It reflects a belief that the region will continue to strengthen through stress tests.” 

And at a time when geopolitical developments are prompting some investors to reassess their exposure to the GCC region, de Luna noted that the real challenge lies in how those decisions are made. “My advice to investors is to separate headlines from fundamentals," he said. "Focus on governance, rule of law, policy credibility, and company-level cashflows. Then, choose strategies that are built for resilience. We believe private equity should be a meaningful part of GCC allocations, because the mid-market remains under-penetrated and still has significant scope for professionalization. There are relatively few control-oriented managers operating in our targeted ticket size, and we believe that creates room for differentiated, operationally-driven private equity.” 

Pictured in the lead image is Nahda Capital Partners founder and Managing Partner Iñigo de Luna. Image courtesy Nahda Capital Partners.