Middle Eastern Market Insights: Al Dhafra Insurance Company P.S.C And 2 Promising Penny Stocks

Most stock markets in the Gulf have recently experienced a subdued phase, largely influenced by softer global oil prices. Despite these challenges, investors continue to seek opportunities that balance potential returns with financial stability. Penny stocks, often representing smaller or newer companies, remain an intriguing investment area when backed by strong financials. This article will explore three such promising penny stocks in the Middle Eastern market, highlighting their potential for growth and resilience against current economic headwinds.

Top 10 Penny Stocks In The Middle East

Click here to see the full list of 82 stocks from our Middle Eastern Penny Stocks screener.

Here's a peek at a few of the choices from the screener.

Al Dhafra Insurance Company P.S.C (ADX:DHAFRA)

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

Overview: Al Dhafra Insurance Company P.S.C. operates in the insurance and reinsurance sectors across the United Arab Emirates, other GCC countries, and internationally, with a market cap of AED486 million.

Operations: The company's revenue is derived from two main segments: AED54.09 million from investments and AED74.23 million from underwriting activities.

Market Cap: AED486M

Al Dhafra Insurance Company P.S.C., with a market cap of AED486 million, operates in the insurance and reinsurance sectors. The company's short-term assets significantly exceed both its short and long-term liabilities, positioning it well for financial stability. Despite a recent earnings growth of 4.4%, this remains below industry standards, and its net profit margin has slightly declined from last year. Al Dhafra is debt-free, which eliminates concerns about interest coverage or cash flow sufficiency for debt service. However, the company’s return on equity is considered low at 7.6%, and it has an unstable dividend track record.

• Jump into the full analysis health report here for a deeper understanding of Al Dhafra Insurance Company P.S.C.
• Review our historical performance report to gain insights into Al Dhafra Insurance Company P.S.C's track record.

Union Properties (DFM:UPP)

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

Overview: Union Properties Public Joint Stock Company is involved in property investment and development, with a market cap of AED2.32 billion.

Operations: The company's revenue is primarily derived from Goods and Services at AED483.65 million, followed by Real Estate and Others at AED73.69 million, and Contracting at AED54.82 million.

Market Cap: AED2.32B

Union Properties, with a market cap of AED2.32 billion, has demonstrated significant revenue growth in recent quarters, reporting AED197.2 million in sales for Q3 2025 compared to AED123.3 million the previous year. Despite this positive trend, the company's earnings have been impacted by large one-off gains of AED453.2 million over the past year, raising questions about the sustainability of its profit margins currently at 55.4%. While Union Properties has reduced its debt to equity ratio significantly and maintains short-term assets exceeding liabilities, negative earnings growth and low return on equity (10.9%) present challenges for future performance stability among penny stocks in the region.

• Click here to discover the nuances of Union Properties with our detailed analytical financial health report.
• Review our growth performance report to gain insights into Union Properties' future.

Pulsenmore (TASE:PULS)

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

Overview: Pulsenmore Ltd. provides self-scan ultrasound devices for remote clinical diagnosis and screening, with a market cap of ₪197.19 million.

Operations: The company generates revenue from its X-Ray Equipment segment, amounting to ₪9.31 million.

Market Cap: ₪197.19M

Pulsenmore Ltd., with a market cap of ₪197.19 million, remains unprofitable despite its innovative self-scan ultrasound technology recently receiving FDA De Novo marketing authorization for use in the U.S. This development could potentially enhance its market presence amidst growing constraints on obstetric services access. Despite generating limited revenue of ₪9.31 million from X-Ray Equipment, Pulsenmore's financials reflect a net loss increase to ₪23.16 million for the half-year ending June 2025, compared to the previous year's loss of ₪15.9 million. The company benefits from being debt-free and having sufficient cash runway exceeding one year based on current free cash flow trends.

• Get an in-depth perspective on Pulsenmore's performance by reading our balance sheet health report here.
• Learn about Pulsenmore's historical performance here.

Make It Happen

• Click here to access our complete index of 82 Middle Eastern Penny Stocks.
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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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