3 Undiscovered Gems in Middle East to Enhance Your Portfolio

As the Middle East markets navigate mixed signals from easing U.S.-China trade tensions and tepid corporate earnings, investors are keeping a keen eye on the shifting dynamics within the region's financial landscape. With Gulf markets showing varied performances amid these global developments, identifying stocks with robust fundamentals and potential for growth becomes essential in enhancing one's portfolio.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Click here to see the full list of 211 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Bawan (SASE:1302)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bawan Company engages in the manufacturing and sale of metal and steel works in Saudi Arabia, with a market capitalization of SAR3.35 billion.

Operations: Bawan generates revenue primarily from its Metal and Wood segment, contributing SAR1.93 billion, followed by the Electrical segment at SAR722.97 million and the Plastic segment at SAR397.67 million.

Bawan, a notable player in the Middle East's building sector, has shown promising growth with earnings climbing 11.8% over the past year, outpacing its industry peers. The company's net income for Q2 2025 reached SAR 50.37 million, up from SAR 23.12 million a year prior, reflecting a solid performance boost. Despite its high net debt to equity ratio of 109.3%, interest payments are well covered at 3.9 times by EBIT, indicating financial resilience amidst expansion efforts and strategic leadership changes with Mr. Ziyad Abdullatif Al-Barak stepping in as Acting CEO later this year.

• Click here to discover the nuances of Bawan with our detailed analytical health report.

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

I.D.I. Insurance (TASE:IDIN)

Simply Wall St Value Rating: ★★★★★☆

Overview: I.D.I. Insurance Company Ltd. offers a range of insurance products and services to both individual and corporate clients in Israel, with a market capitalization of ₪2.88 billion.

Operations: I.D.I. Insurance derives its revenue primarily from providing insurance products to individual and corporate clients in Israel. The company's financial performance is reflected in its market capitalization of approximately ₪2.88 billion, with a focus on optimizing operational efficiency to enhance profitability.

With a price-to-earnings ratio of 9.4x, I.D.I. Insurance stands out as an attractive option in Israel's market, where the average is 15.9x. Over the past five years, earnings have grown at a steady pace of 6% annually, showcasing resilience in a competitive industry. The company has successfully eliminated its debt from a previous debt-to-equity ratio of 74%, enhancing financial stability and reducing interest payment concerns. Recent reports highlight robust performance with net income reaching ILS 94.62 million for Q2 2025, up from ILS 59.53 million last year, reflecting strong operational efficiency and potential for future growth.

• Get an in-depth perspective on I.D.I. Insurance's performance by reading our health report here.

• Review our historical performance report to gain insights into I.D.I. Insurance's's past performance.

Wesure Global Tech (TASE:WESR)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Wesure Global Tech Ltd, with a market cap of ₪1.27 billion, operates internationally by developing and marketing technologies for digital platforms within the insurance and finance sectors.

Operations: Wesure Global Tech generates revenue primarily from its General Insurance segment, with Ayalon Insurance contributing ₪2.44 billion and Wesure Insurance adding ₪327.35 million. The Life Insurance and Long-Term Savings segment also plays a significant role, bringing in ₪1.55 billion.

Wesure Global Tech, a relatively small player in the insurance sector, is capturing attention with its robust financials. The company's earnings growth of 55% over the past year outpaced the industry average of 35%, showcasing its competitive edge. Trading at a price-to-earnings ratio of 8.1x, Wesure appears undervalued compared to the IL market's 15.9x. Despite a volatile share price recently, its interest payments are comfortably covered by EBIT at six times coverage, indicating strong operational health. Recent reports show net income for Q2 reached ILS 95 million from ILS 46 million last year, reflecting solid profitability improvements.

• Delve into the full analysis health report here for a deeper understanding of Wesure Global Tech.

• Learn about Wesure Global Tech's historical performance.

Key Takeaways

• Discover the full array of 211 Middle Eastern Undiscovered Gems With Strong Fundamentals right here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Seeking Other Investments?

• 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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