Spotlighting Undiscovered Gems in the Middle East This September 2025

As Gulf stock markets remain steady amid recent interest rate cuts by regional central banks, investors are cautiously navigating the landscape, especially with Qatar and Egypt experiencing extended losses due to profit-taking. In this environment, identifying promising stocks requires a keen eye for companies that can thrive despite monetary policy shifts and broader market uncertainties.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Al Wathba National Insurance Company PJSC	10.97%	10.37%	3.14%	★★★★★★
Sure Global Tech	NA	10.11%	15.42%	★★★★★★
Baazeem Trading	8.48%	-1.74%	-2.37%	★★★★★★
Qassim Cement	NA	0.78%	-14.90%	★★★★★★
MOBI Industry	18.09%	6.66%	22.02%	★★★★★★
Saudi Azm for Communication and Information Technology	3.53%	16.38%	21.65%	★★★★★★
Nofoth Food Products	NA	15.49%	26.47%	★★★★★★
Najran Cement	14.76%	-3.67%	-26.79%	★★★★★★
National General Insurance (P.J.S.C.)	NA	14.58%	25.09%	★★★★★☆
Etihad Atheeb Telecommunication	0.97%	37.69%	60.25%	★★★★★☆

Click here to see the full list of 205 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

RAK Properties PJSC (ADX:RAKPROP)

Simply Wall St Value Rating: ★★★★★★

Overview: RAK Properties PJSC, along with its subsidiaries, focuses on investing in, developing, and managing real estate properties in the United Arab Emirates, with a market capitalization of AED4.53 billion.

Operations: RAK Properties generates revenue primarily through real estate sales (AED1.29 billion), hotel operations (AED212.50 million), and property leasing (AED67.84 million). The company's net profit margin reflects its efficiency in converting revenue into profit.

RAK Properties, a dynamic player in the Middle East's real estate scene, has seen impressive earnings growth of 73.9% over the past year, outpacing the industry average of 26.9%. This growth is bolstered by a strategic partnership with Hubpay to facilitate property purchases using digital assets like BTC and ETH, expanding its appeal to global investors. The company's net debt to equity ratio stands at a satisfactory 12.7%, reflecting prudent financial management as it reduced from 27.2% over five years. Notably, RAK Properties reported AED404 million in sales for Q2 2025 compared to AED321 million last year.

• Dive into the specifics of RAK Properties PJSC here with our thorough health report.

• Learn about RAK Properties PJSC's historical performance.

Computer Direct Group (TASE:CMDR)

Simply Wall St Value Rating: ★★★★★★

Overview: Computer Direct Group Ltd. operates in the computing and software sector in Israel, with a market capitalization of ₪1.52 billion.

Operations: Computer Direct Group generates revenue primarily from three segments: Technological Solutions and Services, Management Consulting and Value-Added Services (₪2.68 billion), Infrastructure and Computing (₪1.28 billion), and Outsourcing of Business Processes and Technology Support Centers (₪365.75 million).

Computer Direct Group, a promising player in the Middle East tech sector, has seen its earnings grow at an average rate of 16.3% over the past five years. Despite not outpacing the IT industry last year, it remains profitable with a robust cash runway and trades at 66.9% below its estimated fair value. The company's net income for Q2 rose to ILS 25.07 million from ILS 19.45 million the previous year, while basic earnings per share increased to ILS 7.31 from ILS 5.67, reflecting solid performance improvements alongside a reduced debt-to-equity ratio from 58.9% to 29.8%.

• Get an in-depth perspective on Computer Direct Group's performance by reading our health report here.

• Evaluate Computer Direct Group's historical performance by accessing our past performance report.

Danel (Adir Yeoshua) (TASE:DANE)

Simply Wall St Value Rating: ★★★★★☆

Overview: Danel (Adir Yeoshua) Ltd is a company that offers human resources services in Israel, with a market capitalization of ₪2.82 billion.

Operations: Danel's revenue is primarily derived from its Auxiliary Force in the Field of Nursing, which contributes ₪1.51 billion, followed by Facilities for People with Special Needs at ₪599.66 million. The Manpower in the Human Resources segment and Medical Services generate revenues of ₪443.66 million and ₪250.90 million, respectively, while Productivity adds another ₪29.11 million to the total revenue mix.

Danel (Adir Yeoshua) appears to be an intriguing player in the Middle Eastern market, with its recent sales reaching ILS 714.96 million for Q2 2025, up from ILS 689.2 million a year prior. Despite this growth, net income fell to ILS 28.53 million from ILS 32.25 million in the same period last year, reflecting challenges in maintaining profitability amidst industry pressures and a debt-to-equity ratio rise from 10.3% to 17.5% over five years. However, the company trades at a significant discount of approximately 34% below its estimated fair value and boasts strong interest coverage at nearly 24 times EBIT over interest payments, suggesting robust financial health despite earnings not outpacing industry growth rates recently.

• Delve into the full analysis health report here for a deeper understanding of Danel (Adir Yeoshua).

• Examine Danel (Adir Yeoshua)'s past performance report to understand how it has performed in the past.

Make It Happen

• Dive into all 205 of the Middle Eastern Undiscovered Gems With Strong Fundamentals we have identified here.
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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• 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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