Gulf markets have shown mixed performances recently, with Dubai and Abu Dhabi indices rising while Saudi Arabia's benchmark index has seen a decline. Amidst these fluctuations, investors often look beyond large-cap stocks to explore opportunities in smaller or newer companies. Penny stocks, though an older term, continue to attract interest due to their potential for growth and affordability. In this article, we explore three Middle Eastern penny stocks that stand out for their financial resilience and potential value.
Top 10 Penny Stocks In The Middle East
| Name | Share Price | Market Cap | Rewards & Risks |
| Maharah for Human Resources (SASE:1831) | SAR4.43 | SAR1.99B | ✅ 2 ⚠️ 3 View Analysis > |
| Thob Al Aseel (SASE:4012) | SAR3.50 | SAR1.4B | ✅ 2 ⚠️ 1 View Analysis > |
| Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi (IBSE:MEGAP) | TRY4.86 | TRY1.34B | ✅ 2 ⚠️ 3 View Analysis > |
| E7 Group PJSC (ADX:E7) | AED1.07 | AED2.14B | ✅ 5 ⚠️ 3 View Analysis > |
| Al Wathba National Insurance Company PJSC (ADX:AWNIC) | AED3.30 | AED683.1M | ✅ 2 ⚠️ 3 View Analysis > |
| Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) | AED3.45 | AED398.48M | ✅ 2 ⚠️ 3 View Analysis > |
| Dubai Investments PJSC (DFM:DIC) | AED3.02 | AED12.8B | ✅ 2 ⚠️ 3 View Analysis > |
| Al Dhafra Insurance Company P.S.C (ADX:DHAFRA) | AED4.86 | AED486M | ✅ 1 ⚠️ 2 View Analysis > |
| Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC) | AED0.83 | AED516.41M | ✅ 2 ⚠️ 2 View Analysis > |
| Tgi Infrastructures (TASE:TGI) | ₪2.633 | ₪195.74M | ✅ 2 ⚠️ 2 View Analysis > |
Click here to see the full list of 79 stocks from our Middle Eastern Penny Stocks screener.
We're going to check out a few of the best picks from our screener tool.
Hily Holding PJSC (ADX:HH)
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Hily Holding PJSC, along with its subsidiaries, manages securities portfolios across the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait, and Bahrain with a market cap of AED282 million.
Operations: The company's revenue is generated from trading (AED51.33 million), investment in properties (AED23.38 million), freight forwarding and storage (AED15.78 million), and investment in financial securities (AED65.01 million).
Market Cap: AED282M
Hily Holding PJSC has demonstrated significant earnings growth of 221.6% over the past year, surpassing its five-year average and outpacing the Industrials industry. Despite a satisfactory net debt to equity ratio of 26.3%, interest coverage remains low at 1.8x EBIT, indicating potential challenges in managing debt obligations effectively. The company’s financial results were impacted by a large one-off loss, yet it achieved a net profit margin improvement to 23%. While revenue increased substantially compared to last year, short-term assets comfortably cover both short and long-term liabilities, supporting liquidity stability amidst board inexperience concerns.
- Unlock comprehensive insights into our analysis of Hily Holding PJSC stock in this financial health report.
- Understand Hily Holding PJSC's track record by examining our performance history report.
Watania International Holding PJSC (DFM:WATANIA)
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Watania International Holding PJSC is an investment holding company that operates as a takaful provider in the United Arab Emirates, with a market capitalization of AED169.20 million.
Operations: The company's revenue segments include Investments generating AED5.92 million, Takaful - Family contributing AED21.18 million, General Takaful with AED762.26 million, and Group Life (Employee Benefits) at AED117.94 million.
Market Cap: AED169.2M
Watania International Holding PJSC's recent earnings report highlights a significant improvement in net income for Q2 2025, reaching AED7.48 million from AED1.53 million the previous year, despite a decline in six-month earnings. The company's financials were influenced by a large one-off gain of AED5.3 million over the past year, while profit margins have decreased to 1.3% from last year's 2.6%. Watania's debt level is manageable with more cash than total debt and short-term assets of AED1.3 billion exceeding both short and long-term liabilities, ensuring liquidity stability amidst low return on equity challenges at 5.1%.
- Jump into the full analysis health report here for a deeper understanding of Watania International Holding PJSC.
- Evaluate Watania International Holding PJSC's historical performance by accessing our past performance report.
Sinpas Gayrimenkul Yatirim Ortakligi (IBSE:SNGYO)
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Sinpas Gayrimenkul Yatirim Ortakligi A.S., originally established as Sinpas Insaat in 2006 and transformed into a Real Estate Investment Trust (REIT) in 2007, operates in the real estate sector with a market capitalization of TRY19.32 billion.
Operations: The company generates its revenue primarily from Residential Real Estate Developments, amounting to TRY13.33 billion.
Market Cap: TRY19.32B
Sinpas Gayrimenkul Yatirim Ortakligi A.S. has demonstrated substantial earnings growth of 140.9% over the past year, surpassing industry averages, though this was partly driven by a significant one-off gain of TRY5.3 billion. While its price-to-earnings ratio of 3.8x suggests undervaluation compared to the Turkish market, concerns remain regarding its debt coverage as operating cash flow covers only 8% of debt and interest payments are not well covered by EBIT (2.6x). Nonetheless, its short-term assets significantly exceed liabilities, providing some financial stability despite lower net profit margins compared to last year.
- Dive into the specifics of Sinpas Gayrimenkul Yatirim Ortakligi here with our thorough balance sheet health report.
- Gain insights into Sinpas Gayrimenkul Yatirim Ortakligi's past trends and performance with our report on the company's historical track record.
Summing It All Up
- Access the full spectrum of 79 Middle Eastern Penny Stocks by clicking on this link.
- Seeking Other Investments? Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
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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