Middle Eastern Penny Stocks Below US$700M Market Cap To Watch

The Middle Eastern stock markets have recently exhibited mixed performances, with Gulf bourses reacting to global economic cues such as concerns over the U.S. Federal Reserve's independence and fluctuating oil prices. Amidst these market dynamics, investors often seek opportunities in lesser-known stocks that may offer growth potential at a lower entry point. Penny stocks, though sometimes considered a niche investment area, can provide intriguing prospects when they are supported by strong financial health 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.

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

United Arab Bank P.J.S.C (ADX:UAB)

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

Overview: United Arab Bank P.J.S.C., along with its subsidiary, offers commercial banking products and services to institutional and corporate clients in the United Arab Emirates, with a market capitalization of AED2.43 billion.

Operations: The company's revenue is derived from three primary segments: Retail Banking with AED74.79 million, Wholesale Banking contributing AED468.96 million, and Treasury and Capital Markets generating AED209.62 million.

Market Cap: AED2.43B

United Arab Bank P.J.S.C. has demonstrated profitability growth, with net income rising to AED 106.18 million in Q2 2025 from AED 70.27 million a year earlier, supported by a strong net interest income of AED 157.95 million. The bank's price-to-earnings ratio of 6.6x suggests it is valued below the AE market average, potentially appealing to value-focused investors despite its high share price volatility and low return on equity at 13.3%. Recent capital increases and amendments to the articles of association indicate strategic moves for expansion, while maintaining an appropriate loans-to-deposits ratio at 75% and sufficient bad loan allowances at 148%.

• Click to explore a detailed breakdown of our findings in United Arab Bank P.J.S.C's financial health report.
• Evaluate United Arab Bank P.J.S.C's historical performance by accessing our past performance 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 across the United Arab Emirates, Gulf Cooperation Council, and internationally with a market cap of AED230 million.

Operations: The company's revenue is primarily derived from its General Insurance segment, which generated AED264.05 million, and its Life Insurance segment, contributing AED17.34 million.

Market Cap: AED230M

Union Insurance Company P.J.S.C. has recently turned profitable, reporting a net income of AED 22.75 million for the first half of 2025, up from AED 12.93 million in the same period last year. Despite its low return on equity at 18.1% and a management team with limited experience, the company benefits from being debt-free and having short-term assets that comfortably cover its liabilities. The price-to-earnings ratio of 4.8x positions it attractively below the AE market average, though recent earnings were influenced by a significant one-off gain of AED14.2 million impacting financial results to June 30, 2025.

• Jump into the full analysis health report here for a deeper understanding of Union Insurance Company P.J.S.C.
• Gain insights into Union Insurance Company P.J.S.C's past trends and performance with our report on the company's historical 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 capitalization of SAR1.52 billion.

Operations: The company's revenue is primarily derived from Thobs, generating SAR374.05 million, and Fabrics, contributing SAR125.39 million.

Market Cap: SAR1.52B

Thob Al Aseel's recent financial performance highlights a mixed landscape for investors. The company, with a market cap of SAR1.52 billion, reported a decline in quarterly sales to SAR87.36 million from SAR116.43 million the previous year, alongside reduced net income of SAR9.23 million compared to SAR26.67 million last year. Despite this, earnings per share improved slightly over six months to June 30, 2025 (SAR0.18 vs SAR0.17). The firm remains debt-free and boasts high-quality earnings with short-term assets significantly exceeding liabilities, although its return on equity is relatively low at 14.3%.

• Click here and access our complete financial health analysis report to understand the dynamics of Thob Al Aseel.
• Learn about Thob Al Aseel's historical performance here.

Seize The Opportunity

• Reveal the 78 hidden gems among our Middle Eastern Penny Stocks screener with a single click 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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