As most Gulf markets settle higher, investors are closely watching the potential impacts of a U.S.-China trade truce on the Middle Eastern economy. Amidst these developments, penny stocks—typically representing smaller or newer companies—remain an intriguing investment area despite being considered somewhat outdated. In this article, we explore three such stocks that demonstrate strong financial health and present promising opportunities for investors seeking hidden value in quality companies.
Top 10 Penny Stocks In The Middle East
| Name | Share Price | Market Cap | Rewards & Risks |
| Thob Al Aseel (SASE:4012) | SAR4.19 | SAR1.68B | ✅ 2 ⚠️ 1 View Analysis > |
| Keir International (SASE:9542) | SAR3.92 | SAR474M | ✅ 2 ⚠️ 3 View Analysis > |
| Alarum Technologies (TASE:ALAR) | ₪2.788 | ₪195.25M | ✅ 4 ⚠️ 2 View Analysis > |
| Oil Refineries (TASE:ORL) | ₪0.912 | ₪2.84B | ✅ 1 ⚠️ 2 View Analysis > |
| Tarya Israel (TASE:TRA) | ₪0.57 | ₪169.21M | ✅ 2 ⚠️ 2 View Analysis > |
| Tgi Infrastructures (TASE:TGI) | ₪2.222 | ₪165.19M | ✅ 2 ⚠️ 2 View Analysis > |
| Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC) | AED0.705 | AED428.82M | ✅ 2 ⚠️ 2 View Analysis > |
| Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) | AED3.36 | AED388.08M | ✅ 2 ⚠️ 4 View Analysis > |
| E7 Group PJSC (ADX:E7) | AED1.00 | AED2.02B | ✅ 3 ⚠️ 2 View Analysis > |
| Dubai Investments PJSC (DFM:DIC) | AED2.36 | AED10.03B | ✅ 2 ⚠️ 3 View Analysis > |
Click here to see the full list of 94 stocks from our Middle Eastern Penny Stocks screener.
Let's dive into some prime choices out of the screener.
Apex Investment PSC (ADX:APEX)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Apex Investment PSC is engaged in the manufacturing, distribution, and sale of clinkers and cement products both within the United Arab Emirates and internationally, with a market cap of AED14.78 billion.
Operations: The company's revenue is primarily derived from catering (AED600.69 million), manufacturing (AED222.78 million), facility management services (AED107.89 million), and contracting (AED40.20 million).
Market Cap: AED14.78B
Apex Investment PSC, despite its significant market cap of AED14.78 billion, faces challenges typical for penny stocks. The company reported a net loss of AED25.6 million in Q1 2025, contrasting with a profit the previous year. Despite being debt-free and having short-term assets significantly exceeding liabilities, Apex's earnings have been negatively impacted by large one-off losses and volatile share prices. Its return on equity is low at 2.3%, and profit margins have decreased to 5.4% from last year's 17.6%. While it has experienced board members, earnings growth has been negative recently, complicating comparisons with industry averages.
- Jump into the full analysis health report here for a deeper understanding of Apex Investment PSC.
- Review our historical performance report to gain insights into Apex Investment PSC's track record.
Ihlas Holding (IBSE:IHLAS)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Ihlas Holding A.S. operates in construction and real estate, media, manufacturing and trading, as well as healthcare and education sectors in Turkey and internationally, with a market cap of TRY3.49 billion.
Operations: The company's revenue is primarily derived from its marketing segment at TRY4.22 billion, followed by media at TRY2.29 billion and construction at TRY1.88 billion.
Market Cap: TRY3.49B
Ihlas Holding A.S., with a market cap of TRY3.49 billion, operates across various sectors but remains unprofitable, highlighted by a negative return on equity of -18.34%. Despite this, the company has reduced its debt to equity ratio significantly over five years and maintains more cash than total debt. Recent earnings showed sales at TRY10.34 billion with a net loss of TRY1.38 billion, reversing from last year's profit. While short-term assets cover liabilities comfortably and shareholders haven't faced dilution recently, the stock's high volatility poses challenges typical for penny stocks in the region.
- Take a closer look at Ihlas Holding's potential here in our financial health report.
- Evaluate Ihlas Holding's historical performance by accessing our past performance report.
Imed Infinity Medical-Limited Partnership (TASE:IMED)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Imed Infinity Medical-Limited Partnership is a research and development partnership that invests in medical field projects, mainly in digital health, with a market cap of ₪6.73 million.
Operations: The partnership's revenue is primarily derived from its venture capital activities, amounting to $0.041 million.
Market Cap: ₪6.73M
Imed Infinity Medical-Limited Partnership, with a market cap of ₪6.73 million, is pre-revenue, generating US$0.041 million primarily from venture capital activities in digital health projects. The partnership reported a net loss of US$0.575 million for 2024, showing improvement from the previous year's larger loss. Despite its unprofitability and negative return on equity (-7.63%), Imed Infinity has no debt and sufficient cash runway exceeding one year based on current free cash flow levels. The management team is relatively new with an average tenure of 1.3 years, while the experienced board provides stability amidst high share price volatility common in penny stocks.
- Get an in-depth perspective on Imed Infinity Medical-Limited Partnership's performance by reading our balance sheet health report here.
- Learn about Imed Infinity Medical-Limited Partnership's historical performance here.
Turning Ideas Into Actions
- Reveal the 94 hidden gems among our Middle Eastern Penny Stocks screener with a single click here.
- Seeking Other Investments? Find companies with promising cash flow potential yet trading below their fair value.
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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