The name, Caracena, is itself older than the town—older than 2000 years. It is an ancient Mediterranean name dating back to the time of Alexander the Great, probably of Greek origin. 
In the Greek prefecture of Chania, near the town of Therisso there is a Caracena cavern, where ancient pots were found (2km north of the village). As a result of Alexander's conquest of the area, a town of Alexandria Caracena was established by the mouth of the Tigris River on the Persian Gulf.