Most Gulf markets have recently gained ground amid hopes for U.S. interest rate cuts, although ongoing trade tensions between the U.S. and China continue to weigh on investor sentiment. In this context, penny stocks—often smaller or newer companies—remain an intriguing investment area, despite being seen as somewhat outdated. By focusing on strong financials, these stocks can offer investors a unique opportunity to uncover hidden value and potential growth in the Middle Eastern market.
Top 10 Penny Stocks In The Middle East
| Name | Share Price | Market Cap | Rewards & Risks |
| Thob Al Aseel (SASE:4012) | SAR3.77 | SAR1.51B | ✅ 2 ⚠️ 1 View Analysis > |
| Alarum Technologies (TASE:ALAR) | ₪4.596 | ₪327.67M | ✅ 3 ⚠️ 2 View Analysis > |
| E7 Group PJSC (ADX:E7) | AED1.06 | AED2.12B | ✅ 5 ⚠️ 3 View Analysis > |
| Sharjah Insurance Company P.S.C (ADX:SICO) | AED1.49 | AED225M | ✅ 2 ⚠️ 3 View Analysis > |
| Al Wathba National Insurance Company PJSC (ADX:AWNIC) | AED3.40 | AED703.8M | ✅ 2 ⚠️ 3 View Analysis > |
| Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) | AED2.98 | AED344.19M | ✅ 2 ⚠️ 5 View Analysis > |
| Dubai Investments PJSC (DFM:DIC) | AED3.31 | AED13.99B | ✅ 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 | AED504.85M | ✅ 2 ⚠️ 2 View Analysis > |
| Tgi Infrastructures (TASE:TGI) | ₪2.874 | ₪225.6M | ✅ 2 ⚠️ 3 View Analysis > |
Click here to see the full list of 77 stocks from our Middle Eastern Penny Stocks screener.
Let's review some notable picks from our screened stocks.
Finance House P.J.S.C (ADX:FH)
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Finance House P.J.S.C. operates in the United Arab Emirates, offering investment, consumer and commercial financing services, with a market cap of AED595.77 million.
Operations: The company's revenue is primarily derived from commercial and retail financing, which amounts to AED111.32 million, supplemented by investment activities generating AED4.89 million.
Market Cap: AED595.77M
Finance House P.J.S.C. has recently achieved profitability, reporting a net income of AED 11.53 million for Q2 2025, a significant improvement from the previous year. The company's short-term assets significantly exceed both its short and long-term liabilities, indicating strong financial health with AED3.1 billion in assets against AED2.8 billion in short-term liabilities and AED14.4 million in long-term liabilities. Despite a low return on equity of 3.7%, the debt is well-covered by operating cash flow at 115.6%. Recent amendments to the Articles of Association suggest active governance adjustments to support future growth strategies.
- Jump into the full analysis health report here for a deeper understanding of Finance House P.J.S.C.
- Evaluate Finance House P.J.S.C's historical performance by accessing our past performance report.
Union Properties (DFM:UPP)
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Union Properties Public Joint Stock Company focuses on property investment and development, with a market capitalization of AED3.54 billion.
Operations: The company's revenue is derived from Contracting (AED39.35 million), Goods and Services (AED479.28 million), and Real Estate and Others (AED60.01 million).
Market Cap: AED3.54B
Union Properties' financial landscape presents a mixed picture. With a market capitalization of AED3.54 billion, the company has seen its debt to equity ratio significantly improve over five years, now at 12.3%, and its debt is well-covered by operating cash flow (22.8%). However, recent earnings show challenges; Q2 2025 net income decreased to AED8.75 million from AED18.3 million a year ago despite increased sales of AED152.44 million compared to AED127.67 million previously. The company's return on equity remains low at 8%, and interest payments are not well covered by EBIT, indicating potential profitability pressures ahead.
- Click here and access our complete financial health analysis report to understand the dynamics of Union Properties.
- Assess Union Properties' future earnings estimates with our detailed growth reports.
Sinpas Gayrimenkul Yatirim Ortakligi (IBSE:SNGYO)
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Sinpas Gayrimenkul Yatirim Ortakligi, originally established as Sinpas Insaat in 2006 and transformed into a Real Estate Investment Trust (REIT) in 2007, focuses on real estate investment and development with a market capitalization of TRY17.96 billion.
Operations: The company generates revenue primarily from its Residential Real Estate Developments segment, which accounted for TRY13.33 billion.
Market Cap: TRY17.96B
Sinpas Gayrimenkul Yatirim Ortakligi's financials reveal a complex scenario. With a market cap of TRY17.96 billion, the company has significantly reduced its debt to equity ratio from 3622.5% to 13% over five years, though its operating cash flow covers only 8% of debt. Recent earnings show improvement, with Q2 net income at TRY416.41 million compared to a loss last year, yet net profit margins have decreased from 50.9% to 38.4%. Despite large one-off gains impacting results and low return on equity at 13.8%, short-term assets comfortably cover both short- and long-term liabilities.
- Unlock comprehensive insights into our analysis of Sinpas Gayrimenkul Yatirim Ortakligi stock in this financial health report.
- Examine Sinpas Gayrimenkul Yatirim Ortakligi's past performance report to understand how it has performed in prior years.
Next Steps
- Navigate through the entire inventory of 77 Middle Eastern Penny Stocks here.
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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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