Undiscovered Gems in Middle East to Watch This October 2025

As Middle Eastern markets navigate the ripple effects of global credit concerns and fluctuating crude prices, investors are keenly observing the performance of regional indices such as Dubai's and Abu Dhabi's, which have recently experienced declines. In this environment, identifying stocks with strong fundamentals and resilience to macroeconomic pressures becomes crucial for uncovering potential investment opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Click here to see the full list of 206 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Gulf Insurance Group (SASE:8250)

Simply Wall St Value Rating: ★★★★★☆

Overview: Gulf Insurance Group offers a range of insurance and reinsurance solutions to corporates, SMEs, and individual customers in Saudi Arabia, with a market capitalization of SAR1.37 billion.

Operations: Revenue streams for Gulf Insurance Group primarily include motor insurance (SAR622.52 million), health insurance (SAR396.47 million), and property and casualty insurance (SAR355.84 million).

Gulf Insurance Group, a nimble player in the Middle East, showcases solid financial health with no debt over the past five years and a Price-To-Earnings ratio of 10.7x, well below the SA market average of 21.2x. The company reported a net income of SAR 61.23 million for the first half of 2025, a notable increase from SAR 32.24 million a year ago, with earnings per share rising to SAR 1.17 from SAR 0.61. Despite a recent quarterly dip in net income to SAR 34.14 million, its earnings growth of 97.5% over the past year outpaces the insurance industry's -19%.

• Click here and access our complete health analysis report to understand the dynamics of Gulf Insurance Group.

• Gain insights into Gulf Insurance Group's historical performance by reviewing our past performance report.

Hilan (TASE:HLAN)

Simply Wall St Value Rating: ★★★★★★

Overview: Hilan Ltd. is a software as a service (SaaS) provider specializing in enterprise human capital management solutions in Israel, with a market capitalization of ₪6.18 billion.

Operations: Hilan generates revenue primarily from Business Information Services (₪1.71 billion), Payroll Services, Human Resources and Organizational Systems (₪548.53 million), Marketing of Software Products (₪404.74 million), and Computer Infrastructure (₪297.58 million).

Hilan Ltd. has demonstrated robust financial health with a notable reduction in its debt to equity ratio from 38.9% to 3.5% over the past five years, reflecting prudent financial management. The company reported sales of ILS 705.78 million for Q2 2025, up from ILS 670.22 million the previous year, alongside a net income increase to ILS 60.26 million from ILS 58.74 million, indicating steady growth despite not outpacing industry earnings growth of 13.6%. With high-quality earnings and interest payments well covered at a multiple of EBIT (34x), Hilan presents a solid investment case within its sector context.

• Click to explore a detailed breakdown of our findings in Hilan's health report.

• Understand Hilan's track record by examining our Past report.

Y.D. More Investments (TASE:MRIN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Y.D. More Investments Ltd is a privately owned investment manager with a market capitalization of ₪3.60 billion, focusing on various financial services and asset management activities.

Operations: Y.D. More Investments generates revenue primarily from the management of provident and pension funds (₪571.38 million) and mutual fund management (₪275.57 million). Investment portfolio management contributes an additional ₪36.73 million to its revenue streams.

Y.D. More Investments, a promising player in the Middle East, has shown strong performance with recent earnings growth of 75%, surpassing industry averages. The net debt to equity ratio stands at a satisfactory 10.4%, indicating prudent financial management, while interest payments are well covered by EBIT at 72.9 times coverage. Recent inclusion in the S&P Global BMI Index and a share repurchase program up to NIS 20 million highlight its strategic positioning and shareholder value focus. Notably, revenue for Q2 reached ILS 250.97 million compared to ILS 176.15 million last year, with net income rising from ILS 15.09 million to ILS 37.97 million over the same period.

• Take a closer look at Y.D. More Investments' potential here in our health report.

• Evaluate Y.D. More Investments' historical performance by accessing our past performance report.

Key Takeaways

• Investigate our full lineup of 206 Middle Eastern Undiscovered Gems With Strong Fundamentals right here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Curious About Other Options?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com