The Middle East stock markets have recently shown mixed performances, influenced by fluctuating oil prices and anticipation of potential U.S. Federal Reserve rate cuts, which could impact regional monetary policies due to currency pegs. In this environment, identifying stocks with strong fundamentals and growth potential becomes crucial, as these factors can help navigate the uncertainties of the current economic landscape.
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% | ★★★★★★ |
| Baazeem Trading | 8.48% | -1.74% | -2.37% | ★★★★★★ |
| Sure Global Tech | NA | 11.95% | 18.65% | ★★★★★★ |
| Saudi Azm for Communication and Information Technology | 1.94% | 16.33% | 21.26% | ★★★★★★ |
| MOBI Industry | 6.50% | 5.60% | 24.00% | ★★★★★★ |
| Najran Cement | 14.76% | -3.67% | -26.79% | ★★★★★★ |
| Nofoth Food Products | NA | 15.75% | 27.63% | ★★★★★★ |
| Qassim Cement | 0.30% | 0.78% | -14.65% | ★★★★★☆ |
| National General Insurance (P.J.S.C.) | NA | 14.58% | 25.09% | ★★★★★☆ |
| Etihad Atheeb Telecommunication | 0.97% | 37.69% | 60.25% | ★★★★★☆ |
Here we highlight a subset of our preferred stocks from the screener.
Gulf Pharmaceutical Industries P.S.C (ADX:JULPHAR)
Simply Wall St Value Rating: ★★★★★☆
Overview: Gulf Pharmaceutical Industries P.S.C., known as Julphar, operates in the manufacturing and sale of pharmaceutical, cosmetic, and medical products across the UAE, other GCC countries, and internationally with a market capitalization of AED1.57 billion.
Operations: Julphar's revenue primarily stems from its manufacturing segment, which generated AED640.80 million. The company has a segment adjustment of AED1.03 billion that impacts its financials.
JULPHAR, a pharmaceutical player in the Middle East, has seen its debt to equity ratio improve significantly from 128.5% to 39.9% over five years, suggesting better financial management. Despite a volatile share price recently, the company achieved profitability this year with net income of AED 157.9 million for the first half of 2025 compared to a loss last year. Sales rose to AED 707.3 million from AED 675.8 million previously, reflecting steady revenue growth. However, interest payments are not well covered by EBIT at just 2.1x coverage, indicating potential challenges in managing debt obligations effectively.
Eastern Province Cement (SASE:3080)
Simply Wall St Value Rating: ★★★★★★
Overview: Eastern Province Cement Company is engaged in the production and sale of clinker and cement both within Saudi Arabia and internationally, with a market capitalization of SAR2.21 billion.
Operations: Eastern Province Cement generates revenue primarily from the sale of cement, contributing SAR897.84 million, and precast concrete, adding SAR352.29 million.
Eastern Province Cement, a smaller player in the Middle East cement industry, showcases a blend of solid performance and potential challenges. Over the past year, earnings grew by 6.7%, though this lags behind the Basic Materials industry's impressive 54.3% growth. With no debt on its books for over five years, financial stability is evident, and its price-to-earnings ratio of 9.3x suggests it's trading at good value compared to the SA market's 20.3x average. Recent results highlight sales of SAR 310 million for Q2 2025, up from SAR 269 million last year; however, six-month net income was slightly lower at SAR 125 million versus SAR 134 million previously.
- Click to explore a detailed breakdown of our findings in Eastern Province Cement's health report.
Evaluate Eastern Province Cement's historical performance by accessing our past performance report.
Urbanica (Palo) Retail (TASE:URBC)
Simply Wall St Value Rating: ★★★★★☆
Overview: Urbanica (Palo) Retail Ltd is involved in the design, purchase, marketing, and retail sale of clothing for all genders and age groups in Israel, with a market cap of ₪1.47 billion.
Operations: Urbanica's revenue primarily comes from fashion clothing, generating ₪487.01 million, and fashion accessories, contributing ₪132.95 million.
Urbanica, a small yet promising player in the Middle East retail sector, has shown remarkable progress over the past year. With earnings growth of 68.8%, it has outpaced its industry peers significantly. The company is debt-free and boasts high-quality earnings, reflecting robust financial health. Levered free cash flow increased to US$46.62 million by the end of 2024 from US$43.19 million in 2023, indicating solid operational efficiency despite modest revenue under US$1 million (₪0). Urbanica’s upcoming Q2 2025 results announcement on August 25 could provide further insights into its potential trajectory within the specialty retail space.
- Take a closer look at Urbanica (Palo) Retail's potential here in our health report.
Understand Urbanica (Palo) Retail's track record by examining our Past report.
Next Steps
- Navigate through the entire inventory of 200 Middle Eastern Undiscovered Gems With Strong Fundamentals here.
- Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Interested In Other Possibilities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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- 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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