Middle Eastern Market: 3 Penny Stocks With Market Caps Under US$4B

Most Gulf markets have recently gained as investors focus on earnings, while Saudi Arabia's index has slipped due to banking sector challenges. In this context, penny stocks—though a somewhat outdated term—remain relevant for investors seeking growth opportunities in smaller or newer companies. With strong financial health, these stocks can offer significant returns, and we will explore three such Middle Eastern penny stocks that stand out for their balance sheet strength and potential for long-term success.

Top 10 Penny Stocks In The Middle East

Click here to see the full list of 79 stocks from our Middle Eastern Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Apex Investment PSC (ADX:APEX)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Apex Investment PSC engages in the manufacturing, distribution, and sale of clinkers and cement products both within the United Arab Emirates and internationally, with a market capitalization of AED14.53 billion.

Operations: Apex Investment PSC's revenue is primarily derived from its Catering segment with AED589.52 million, followed by Manufacturing at AED226.07 million, and Facility Management Services contributing AED107.27 million.

Market Cap: AED14.53B

Apex Investment PSC, with a market capitalization of AED14.53 billion, operates without debt and has seen its earnings grow by 36.6% annually over the past five years. However, recent performance shows negative earnings growth of -24% in the last year and declining profit margins from 19.3% to 15%. Despite these challenges, Apex's short-term assets significantly cover both its short- and long-term liabilities, indicating financial stability. The company's second-quarter net income rose substantially to AED97.2 million from AED18.74 million a year ago despite lower sales figures, influenced by large one-off gains impacting overall earnings quality.

• Get an in-depth perspective on Apex Investment PSC's performance by reading our balance sheet health report here.
• Explore historical data to track Apex Investment PSC's performance over time in our past results report.

Gulf Cement Company P.S.C (ADX:GCEM)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Gulf Cement Company P.S.C. is engaged in the production and marketing of various types of cement both within the United Arab Emirates and internationally, with a market cap of AED368.26 million.

Operations: The company's revenue is primarily derived from its manufacturing segment, amounting to AED539.36 million.

Market Cap: AED368.26M

Gulf Cement Company P.S.C., with a market cap of AED368.26 million, remains unprofitable but has shown progress by reducing its net loss from AED14.9 million to AED2.72 million in the second quarter of 2025 compared to the previous year. The company's sales increased to AED136.05 million from AED103.51 million, indicating revenue growth despite ongoing losses and a negative return on equity of -6.56%. While its debt levels are satisfactory with a net debt to equity ratio of 5.6%, short-term liabilities exceed short-term assets, presenting liquidity challenges amidst high share price volatility over recent months.

• Take a closer look at Gulf Cement Company P.S.C's potential here in our financial health report.
• Review our historical performance report to gain insights into Gulf Cement Company P.S.C's track record.

Dubai Investments PJSC (DFM:DIC)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Dubai Investments PJSC operates in property, investment, manufacturing, contracting, and services sectors both in the United Arab Emirates and internationally, with a market capitalization of AED13.95 billion.

Operations: The company generates revenue from three primary segments: Property (AED1.87 billion), Manufacturing, Contracting and Services (AED1.46 billion), and Investments (AED214.32 million).

Market Cap: AED13.95B

Dubai Investments PJSC, with a market cap of AED13.95 billion, has demonstrated robust earnings growth of 35.3% over the past year, outpacing its five-year average and industry performance. However, despite a satisfactory net debt to equity ratio of 17.3%, its operating cash flow covers only 11.5% of debt obligations, indicating potential liquidity concerns. The company's recent earnings report for the second quarter showed an increase in net income to AED331.34 million from AED289.24 million year-over-year, although revenue declined slightly from AED1,238.12 million to AED1,066.36 million during the same period due to one-off gains impacting results.

• Jump into the full analysis health report here for a deeper understanding of Dubai Investments PJSC.
• Learn about Dubai Investments PJSC's future growth trajectory here.

Turning Ideas Into Actions

• Get an in-depth perspective on all 79 Middle Eastern Penny Stocks by using our screener here.
• Looking For Alternative Opportunities? We've found 17 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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