Undiscovered Gems in Middle East Stocks for October 2025

As most Gulf markets ease amid economic uncertainty and geopolitical tensions, the region's financial landscape remains influenced by fluctuating oil prices and potential U.S. Federal Reserve rate cuts. Despite these challenges, discerning investors can find opportunities in small-cap stocks that demonstrate resilience and growth potential within the Middle East's dynamic market environment.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Click here to see the full list of 204 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Bank Of Sharjah P.J.S.C (ADX:BOS)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bank Of Sharjah P.J.S.C. operates as a provider of commercial and investment banking products and services in the United Arab Emirates, with a market capitalization of AED4.32 billion.

Operations: The company generates revenue primarily from its Commercial Banking segment, contributing AED373.76 million, and its Investment and Treasury segment, which brings in AED342.43 million.

BoS, a small cap player in the Middle East banking sector, has seen an impressive earnings growth of 1067.8% over the past year, surpassing the industry average of 14.4%. Despite this growth, it faces challenges with a high level of bad loans at 6.6%, while maintaining a low allowance for these non-performing loans at just 86%. The bank's price-to-earnings ratio stands attractively at 9x compared to the AE market's 12.3x. Recent leadership changes include appointing Adnan Sajwani as Acting Chief Compliance Officer to enhance regulatory compliance and financial crime prevention efforts.

• Unlock comprehensive insights into our analysis of Bank Of Sharjah P.J.S.C stock in this health report.

• Examine Bank Of Sharjah P.J.S.C's past performance report to understand how it has performed in the past.

Middle East Pharmaceutical Industries (SASE:4016)

Simply Wall St Value Rating: ★★★★★☆

Overview: Middle East Pharmaceutical Industries Company focuses on the research, development, manufacture, and marketing of generic medicines and pharmaceutical preparations in Saudi Arabia and internationally, with a market cap of SAR2.59 billion.

Operations: Middle East Pharmaceutical Industries generates revenue primarily from three segments: private customers (SAR286.25 million), public customers (SAR95.00 million), and export customers (SAR50.82 million). The company's focus on generic medicines and pharmaceutical preparations contributes to its financial structure, with a notable emphasis on the private customer segment as the largest revenue source.

Middle East Pharmaceutical Industries has shown promising growth, with earnings up 16.9% over the past year, outpacing the industry average of 4.9%. The company maintains a satisfactory net debt to equity ratio of 9.5%, reflecting prudent financial management. Recent earnings reports reveal sales for the second quarter at SAR 117.66 million, an increase from SAR 101.13 million last year, and net income at SAR 24.81 million compared to SAR 21.81 million previously. A strategic agreement with Adalvo Limited positions Avalon Pharma for expansion in MENA markets, potentially enhancing its portfolio with GLP-1 products targeting chronic obesity and weight loss.

• Navigate through the intricacies of Middle East Pharmaceutical Industries with our comprehensive health report here.

• Gain insights into Middle East Pharmaceutical Industries' historical performance by reviewing our past performance report.

Equital (TASE:EQTL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Equital Ltd. operates through its subsidiaries in the real estate, oil and gas, and residential construction sectors both in Israel and internationally, with a market cap of ₪5.45 billion.

Operations: Revenue primarily stems from the oil and gas sector in Israel, contributing ₪1.79 billion, followed by property rental and management in Israel at ₪945.25 million. The net profit margin trend displays fluctuations over recent periods, reflecting variability in operational efficiency and cost management strategies.

Equital, a promising player in the Middle East market, showcases strong financial health with its debt to equity ratio dropping from 82% to 62.5% over five years. Trading at 68% below estimated fair value, it offers potential for value seekers. The company's earnings grew by an impressive 16.3% last year, outpacing the oil and gas industry average of just 0.3%. Equital's interest payments are well covered by EBIT at a robust 8.9 times coverage, indicating sound financial management. Recently added to the S&P Global BMI Index, Equital reported net income of ILS 136 million for Q2 compared to ILS 81.74 million last year.

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

• Learn about Equital's historical performance.

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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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