Most Gulf markets have recently experienced a downturn, influenced by weak oil prices and lackluster corporate earnings. Despite these challenges, penny stocks—typically smaller or newer companies—continue to attract attention for their potential to offer growth opportunities at lower price points. While the term "penny stocks" might seem outdated, these investments can still provide significant upside when backed by strong financial health and solid fundamentals.
Top 10 Penny Stocks In The Middle East
| Name | Share Price | Market Cap | Rewards & Risks |
| Thob Al Aseel (SASE:4012) | SAR3.49 | SAR1.4B | ✅ 2 ⚠️ 1 View Analysis > |
| Alarum Technologies (TASE:ALAR) | ₪4.45 | ₪319.04M | ✅ 4 ⚠️ 2 View Analysis > |
| E7 Group PJSC (ADX:E7) | AED1.02 | AED2.02B | ✅ 5 ⚠️ 3 View Analysis > |
| Sharjah Insurance Company P.S.C (ADX:SICO) | AED1.49 | AED225M | ✅ 2 ⚠️ 2 View Analysis > |
| Al Wathba National Insurance Company PJSC (ADX:AWNIC) | AED3.50 | AED724.5M | ✅ 2 ⚠️ 3 View Analysis > |
| Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) | AED3.30 | AED377.69M | ✅ 2 ⚠️ 4 View Analysis > |
| Dubai Investments PJSC (DFM:DIC) | AED3.23 | AED13.65B | ✅ 3 ⚠️ 3 View Analysis > |
| Union Properties (DFM:UPP) | AED0.81 | AED2.31B | ✅ 2 ⚠️ 2 View Analysis > |
| Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC) | AED0.816 | AED510.32M | ✅ 2 ⚠️ 2 View Analysis > |
| Tgi Infrastructures (TASE:TGI) | ₪2.698 | ₪211.79M | ✅ 2 ⚠️ 2 View Analysis > |
Click here to see the full list of 81 stocks from our Middle Eastern Penny Stocks screener.
We'll examine a selection from our screener results.
Abu Dhabi National Hotels Company PJSC (ADX:ADNH)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Abu Dhabi National Hotels Company PJSC owns and manages hotels in the United Arab Emirates, with a market cap of AED 53.80 billion.
Operations: The company's revenue is derived from its diverse operations, including AED 1.48 billion from hotels, AED 1.69 billion from catering services, and AED 302.72 million from transport services.
Market Cap: AED5.38B
Abu Dhabi National Hotels Company PJSC presents a mixed picture for investors interested in penny stocks. The company has demonstrated financial prudence by reducing its debt to equity ratio from 27.3% to 16.8% over five years, and its net debt to equity ratio is satisfactory at 6.7%. Despite high-quality past earnings, recent performance has been challenging with a significant decline in profit margins from 65.1% last year to 12.7%, alongside negative earnings growth of -67.8%. While dividends are not well-covered by earnings or cash flows, the management team and board are experienced, potentially guiding future stability amidst current volatility.
- Click here and access our complete financial health analysis report to understand the dynamics of Abu Dhabi National Hotels Company PJSC.
- Gain insights into Abu Dhabi National Hotels Company PJSC's historical outcomes by reviewing our past performance report.
Al Wathba National Insurance Company PJSC (ADX:AWNIC)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Al Wathba National Insurance Company PJSC operates in the general insurance and reinsurance sectors both within the United Arab Emirates and internationally, with a market capitalization of AED724.50 million.
Operations: The company's revenue is primarily derived from its Motor segment, amounting to AED256.71 million.
Market Cap: AED724.5M
Al Wathba National Insurance Company PJSC offers a compelling case for investors in penny stocks, marked by strong financial health and strategic leadership. The company has successfully reduced its debt to equity ratio from 71.2% to 11% over five years, with cash exceeding total debt and operating cash flow covering debts well. Despite high volatility, earnings surged by 134.9% last year, outpacing the industry significantly. However, one-off gains of AED90.5 million have influenced recent results, and the dividend track record remains unstable. The appointment of an experienced CEO aims to drive strategic growth following record revenues in 2024.
- Dive into the specifics of Al Wathba National Insurance Company PJSC here with our thorough balance sheet health report.
- Assess Al Wathba National Insurance Company PJSC's previous results with our detailed historical performance reports.
Dna Group (T.R.) (TASE:DNA)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Dna Group (T.R.) Ltd develops, manufactures, and markets patented ultrasound systems across Israel, North America, East Asia, and internationally with a market cap of ₪155.56 million.
Operations: The company generates revenue from its Laser Systems and Components segment, amounting to ₪0.31 million.
Market Cap: ₪155.56M
Dna Group (T.R.) Ltd, while operating in the ultrasound systems market, is currently pre-revenue with sales of only ₪0.31 million and has experienced a significant net loss of ₪2.8 million for the half year ending June 2025. Despite being debt-free and having short-term assets significantly exceeding liabilities, recent financials were impacted by a large one-off loss of ₪1.9 million. The company recently announced a private placement involving substantial participation from investors like Israel Canada (T.R) Ltd, potentially signaling strategic financial restructuring or growth plans amidst its volatile earnings performance and low Return on Equity of 0.5%.
- Unlock comprehensive insights into our analysis of Dna Group (T.R.) stock in this financial health report.
- Review our historical performance report to gain insights into Dna Group (T.R.)'s track record.
Where To Now?
- Get an in-depth perspective on all 81 Middle Eastern Penny Stocks by using our screener 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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