As impact investing continues to reshape the landscape of the Middle East and North Africa (MENA), two companies stand out for their commitment to merging profit with purpose: Yellow Door Energy in the UAE and Barakah in Saudi Arabia. Barakah focuses on reducing food waste in Saudi Arabia, with support from notable investors like Food Labs, 500 Global, KAUST Innovation Ventures, and Annex Ventures. These investors are backing innovative projects and technologies that align with sustainable development goals, which Barakah’s mission strongly supports. For Yellow Door Energy, key VC investors include the International Finance Corporation (IFC), Mitsui & Co., Ltd., and APICORP, who are pivotal in financing the company’s renewable energy projects, particularly in solar energy, and supporting its growth across the Middle East.
What is Impact Investing?
Impact investing is an investment strategy aimed at generating not only financial returns but also positive social and environmental outcomes. This approach enables investors to put their money into companies, organizations, and funds that strive to create measurable, beneficial impacts on society and the environment alongside financial gains. Essentially, impact investing seeks to merge profit with purpose, addressing global challenges such as climate change, poverty, and inequality while also achieving sustainable economic growth.
Yellow Door Energy: Pioneering Renewable Energy
Yellow Door Energy, the leading sustainable energy partner for businesses in the Middle East and Africa, delivers sustainable energy solutions through power purchase agreements (PPAs) and solar leases. The company has raised $400 million as of 2023 from notable impact investors like the International Finance Corporation (IFC) and Mitsui & Co. Ltd. Yellow Door Energy currently has over 220 megawatts (MW) of solar energy capacity under development and operation, providing sustainable energy to commercial and industrial clients. Their projects help reduce over 300,000 tons of carbon emissions annually, an impact equivalent to taking 65,000 cars off the road each year. This showcases the significant environmental benefits of their initiatives and the potential of impact investing to drive both profit and purpose.
Barakah: Tackling Food Waste in Saudi Arabia
Founded in 2022 by, Barakah addresses food waste by enabling consumers to purchase surplus meals and reusable food products from restaurants and grocery retailers. This model benefits businesses by recouping money on otherwise wasted food and offers consumers significant discounts. Barakah has overcome cultural hurdles regarding food perception by emphasizing the quality and cost savings of surplus food.
Barakah has rapidly gained traction, with over 1.5 million users and partnerships with more than 1,000 retailers, including global brands like Dunkin’ and Tim Hortons. They’ve sold over 750,000 meals across six Saudi cities that would have otherwise been discarded. The startup raised $1.5 million in a Seed round in September 2023 and secured additional funding in March 2024, led by FoodLabs.
Why Impact Investing Works in MENA
Impact investing is thriving in the MENA region thanks to substantial funding, a focus on sustainability, scalable models, and clear results. Companies like Yellow Door Energy and Barakah are revolutionizing their sectors and enhancing longevity. Yellow Door Energy cuts over 300,000 tons of carbon emissions annually, promoting cleaner air and better health. Barakah reduces food waste, improving sustainability and food distribution. These efforts contribute to healthier, longer lives.
As MENA embraces sustainable development and economic diversification, the role of impact investing will grow. These companies are proving that merging profit with purpose is both feasible and impactful, heralding a promising future for the region.
