3 Middle Eastern Penny Stocks With At Least US$50M Market Cap

The Middle Eastern stock markets have recently experienced mixed performances, influenced by softer oil prices and speculation over potential U.S. Federal Reserve rate cuts. Despite these broader market fluctuations, penny stocks continue to capture investor interest due to their potential for growth at lower price points. Although the term 'penny stock' may seem outdated, these smaller or newer companies can offer significant opportunities when backed by strong financials and solid fundamentals.

Top 10 Penny Stocks In The Middle East

Click here to see the full list of 78 stocks from our Middle Eastern Penny Stocks screener.

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

Phoenix Group (ADX:PHX)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Phoenix Group Plc, along with its subsidiaries, offers crypto and cloud mining services across the United Arab Emirates, Oman, CIS, Canada, the United States, and other international markets with a market cap of AED6.47 billion.

Operations: Phoenix Group's revenue is generated from data processing services amounting to $141.90 million.

Market Cap: AED6.47B

Phoenix Group's recent expansion into Ethiopia, backed by a 30MW hydropower facility, highlights its strategic focus on leveraging renewable energy for crypto and cloud mining. Despite being unprofitable with a net loss of US$229.13 million for the first nine months of 2025, Phoenix is actively scaling operations with new capacity in North America and plans to reach a self-mining hash rate of approximately 13 EH/s by early 2026. The company's short-term assets significantly exceed both short- and long-term liabilities, indicating strong liquidity despite its current financial challenges.

• Jump into the full analysis health report here for a deeper understanding of Phoenix Group.
• Evaluate Phoenix Group's prospects by accessing our earnings growth report.

Union Insurance Company P.J.S.C (ADX:UNION)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Union Insurance Company P.J.S.C. provides insurance products in the United Arab Emirates, Gulf Cooperation Council, and internationally, with a market cap of AED215.28 million.

Operations: The company's revenue is derived from two main segments: Life Insurance, contributing AED19.2 million, and General Insurance, generating AED214.72 million.

Market Cap: AED215.28M

Union Insurance Company P.J.S.C. demonstrates potential in the penny stock market with its low price-to-earnings ratio of 4.3x, significantly below the UAE market average. The company reported a net income increase to AED 33.95 million for the first nine months of 2025, up from AED 22.75 million a year prior, reflecting strong earnings growth despite its relatively inexperienced management team averaging only 1.8 years in tenure. Although Union's short-term assets exceed its immediate liabilities, they fall short against long-term obligations of AED1.2 billion; however, being debt-free alleviates concerns over interest payments or cash flow coverage issues.

• Click to explore a detailed breakdown of our findings in Union Insurance Company P.J.S.C's financial health report.
• Review our historical performance report to gain insights into Union Insurance Company P.J.S.C's track record.

Thob Al Aseel (SASE:4012)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Thob Al Aseel Company engages in the development, import, export, wholesale, and retail of fabrics and readymade clothes with a market cap of SAR1.33 billion.

Operations: The company's revenue is primarily derived from thobs, generating SAR369.43 million, and fabrics, contributing SAR129.35 million.

Market Cap: SAR1.33B

Thob Al Aseel's recent earnings report for Q3 2025 shows a modest increase in sales to SAR81 million, with net income rising to SAR5.99 million. The company benefits from strong short-term asset coverage over both short and long-term liabilities, indicating financial stability. Despite low return on equity at 15.2%, Thob Al Aseel remains debt-free, eliminating concerns about interest obligations or cash flow issues. Earnings growth of 7.2% over the past year surpasses its five-year average and the luxury industry benchmark, although its board lacks extensive experience with an average tenure of 2.7 years, potentially impacting strategic direction.

• Dive into the specifics of Thob Al Aseel here with our thorough balance sheet health report.
• Gain insights into Thob Al Aseel's historical outcomes by reviewing our past performance report.

Taking Advantage

• Gain an insight into the universe of 78 Middle Eastern Penny Stocks by clicking here.
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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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