The Middle Eastern stock markets have been experiencing significant fluctuations, with Saudi stocks recently reaching a five-year high due to anticipated reforms in foreign ownership regulations. Amidst these market dynamics, the concept of penny stocks remains pertinent for investors seeking affordable entry points into potentially high-growth companies. While the term may seem outdated, penny stocks often represent smaller or newer enterprises that can offer substantial growth opportunities when supported by strong financials and sound business models.
Top 10 Penny Stocks In The Middle East
| Name | Share Price | Market Cap | Rewards & Risks |
| E.E.A.M.I (TASE:EEAM-M) | ₪0.074 | ₪7.26M | ✅ 2 ⚠️ 4 View Analysis > |
| Maharah for Human Resources (SASE:1831) | SAR4.72 | SAR2.12B | ✅ 2 ⚠️ 3 View Analysis > |
| Thob Al Aseel (SASE:4012) | SAR3.77 | SAR1.51B | ✅ 2 ⚠️ 1 View Analysis > |
| E7 Group PJSC (ADX:E7) | AED1.05 | AED2.12B | ✅ 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) | AED3.30 | AED353.43M | ✅ 2 ⚠️ 4 View Analysis > |
| Dubai Investments PJSC (DFM:DIC) | AED3.07 | AED13.05B | ✅ 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) | AED0.82 | AED498.77M | ✅ 2 ⚠️ 2 View Analysis > |
| Tgi Infrastructures (TASE:TGI) | ₪2.67 | ₪209.59M | ✅ 2 ⚠️ 3 View Analysis > |
Click here to see the full list of 77 stocks from our Middle Eastern Penny Stocks screener.
We'll examine a selection from our screener results.
E7 Group PJSC (ADX:E7)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: E7 Group PJSC operates in the commercial printing, packaging, and distribution sectors within the United Arab Emirates, with a market capitalization of AED 2.12 billion.
Operations: The company generates revenue primarily from its printing segment, which accounts for AED 615.95 million, and its distribution segment, contributing AED 77.67 million.
Market Cap: AED2.12B
E7 Group PJSC, operating in the commercial printing and distribution sectors, has shown significant earnings growth over the past five years, becoming profitable recently. Despite a volatile share price and high non-cash earnings, it is trading below estimated fair value and offers good relative value compared to industry peers. The company is debt-free with strong asset coverage of liabilities but faces challenges in covering its 6.94% dividend yield through free cash flow. Recent strategic moves include a substantial AED 800 million special dividend payout from reserves, reflecting an emphasis on returning capital to shareholders amidst limited inorganic growth opportunities.
- Navigate through the intricacies of E7 Group PJSC with our comprehensive balance sheet health report here.
- Gain insights into E7 Group PJSC's outlook and expected performance with our report on the company's earnings estimates.
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Sharjah Cement and Industrial Development (PJSC) operates in the cement manufacturing industry, focusing on producing and distributing cement products, with a market cap of AED498.77 million.
Operations: The company generates AED706.16 million from its manufacturing segment.
Market Cap: AED498.77M
Sharjah Cement and Industrial Development (PJSC) has demonstrated robust earnings growth, with a 213.7% increase over the past year, surpassing its five-year average of 55.8% annually. The company's net profit margin improved to 8.5%, reflecting high-quality earnings despite a volatile share price in recent months. Trading at a significant discount to its estimated fair value, it offers potential value for investors while maintaining satisfactory debt levels with well-covered interest payments and liabilities. However, its dividend yield of 6.1% is not adequately covered by free cash flow, posing a risk for income-focused investors.
- Click here and access our complete financial health analysis report to understand the dynamics of Sharjah Cement and Industrial Development (PJSC).
- Assess Sharjah Cement and Industrial Development (PJSC)'s previous results with our detailed historical performance reports.
Yesil Yapi Endüstrisi (IBSE:YYAPI)
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Yesil Yapi Endüstrisi A.S. is a construction company operating in Turkey and internationally, with a market cap of TRY1.67 billion.
Operations: The company generates revenue of TRY29.76 million from its heavy construction segment.
Market Cap: TRY1.67B
Yesil Yapi Endüstrisi has shown remarkable earnings growth, with a very large increase of 2131.6% over the past year, significantly outpacing its five-year average of 55.2% annually. Despite generating less than US$1 million in revenue, the company has improved its net profit margins and reduced its debt to equity ratio from 6.6% to zero over five years. While it maintains more cash than total debt and covers short-term liabilities effectively with assets of TRY431.5 million, high volatility persists in share price movements, which could concern risk-averse investors seeking stability in penny stocks.
- Unlock comprehensive insights into our analysis of Yesil Yapi Endüstrisi stock in this financial health report.
- Examine Yesil Yapi Endüstrisi's past performance report to understand how it has performed in prior years.
Seize The Opportunity
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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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