Douagi was born to a wealthy family of Turkish origin in the city of Tunis in 1909.[1][2] His father, al-Hajj Muhammad al-Du'aji who was a wealthy merchant and landowner, died when Douagi was four years old; he bequeathed to his wife and children a sizeable trust fund from which the family was able to live comfortably. His mother, Nuzhat Bint Shaqshuq, gave birth to three daughters and two sons, Douagi being the only survivor of the two sons.