United Arab Bank P.J.S.C And 2 More Middle Eastern Penny Stocks With Promising Potential

The Middle Eastern stock markets have recently experienced some turbulence, with Saudi stocks dipping due to profit-taking and broad weakness affecting indices in the UAE and Qatar. Despite these challenges, the region continues to offer intriguing opportunities for investors willing to explore smaller or newer companies. Penny stocks, while an outdated term, still capture the essence of investing in less-established firms that may provide significant value when supported by robust financials and clear growth potential.

Top 10 Penny Stocks In The Middle East

Name	Share Price	Market Cap	Rewards & Risks
Maharah for Human Resources (SASE:1831)	SAR4.66	SAR2.1B	✅ 2 ⚠️ 3 View Analysis >
Thob Al Aseel (SASE:4012)	SAR3.71	SAR1.48B	✅ 2 ⚠️ 1 View Analysis >
E7 Group PJSC (ADX:E7)	AED1.04	AED2.08B	✅ 5 ⚠️ 3 View Analysis >
Al Wathba National Insurance Company PJSC (ADX:AWNIC)	AED3.30	AED683.1M	✅ 2 ⚠️ 3 View Analysis >
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)	AED3.30	AED353.43M	✅ 2 ⚠️ 4 View Analysis >
Dubai Investments PJSC (DFM:DIC)	AED3.07	AED13.05B	✅ 2 ⚠️ 3 View Analysis >
Al Dhafra Insurance Company P.S.C (ADX:DHAFRA)	AED4.86	AED486M	✅ 1 ⚠️ 2 View Analysis >
Union Properties (DFM:UPP)	AED0.812	AED3.48B	✅ 1 ⚠️ 3 View Analysis >
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)	AED0.814	AED495.12M	✅ 2 ⚠️ 2 View Analysis >
Tgi Infrastructures (TASE:TGI)	₪2.67	₪209.59M	✅ 2 ⚠️ 3 View Analysis >

Click here to see the full list of 79 stocks from our Middle Eastern Penny Stocks screener.

We'll examine a selection from our screener results.

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

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

Overview: United Arab Bank P.J.S.C. offers commercial banking products and services to institutional and corporate clients in the United Arab Emirates, with a market cap of AED2.50 billion.

Operations: The bank's revenue is primarily generated from its Wholesale Banking segment at AED468.96 million, followed by Treasury and Capital Markets at AED209.62 million, and Retail Banking contributing AED74.79 million.

Market Cap: AED2.5B

United Arab Bank P.J.S.C. has shown robust earnings growth, with a 35.4% increase over the past year, surpassing the banking industry's average. Despite its stable weekly volatility, it remains higher than most UAE stocks. The bank's Return on Equity is considered low at 13.3%, yet it maintains high-quality earnings and an appropriate Loans to Deposits ratio of 75%. Recent capital restructuring through a follow-on equity offering raised AED1.03 billion, increasing issued capital to AED3.09 billion. However, future earnings are projected to decline by 8.3% annually over the next three years according to consensus estimates.

• Navigate through the intricacies of United Arab Bank P.J.S.C with our comprehensive balance sheet health report here.
• Explore United Arab Bank P.J.S.C's analyst forecasts in our 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 AED264.50 million.

Operations: The company generates revenue from two main segments: Life Insurance, contributing AED17.34 million, and General Insurance, which accounts for AED264.05 million.

Market Cap: AED264.5M

Union Insurance Company P.J.S.C. recently reported significant earnings growth, with net income for the second quarter reaching AED 9.7 million, up from AED 1.15 million a year ago, driven partly by a large one-off gain of AED 14.2 million over the past year. Despite its low Return on Equity at 18.1%, the company has become profitable and remains debt-free, reducing financial risk associated with interest payments. However, short-term assets of AED688.9M do not cover long-term liabilities of AED1.2 billion, highlighting potential liquidity concerns despite exceeding short-term liabilities significantly and maintaining a low Price-To-Earnings ratio of 5.5x compared to market averages.

• Dive into the specifics of Union Insurance Company P.J.S.C here with our thorough balance sheet health report.
• Evaluate Union Insurance Company P.J.S.C's historical performance by accessing our past performance report.

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 SAR1.48 billion.

Operations: The company's revenue is primarily derived from its Thobs segment, accounting for SAR374.05 million, followed by the Fabrics segment at SAR125.39 million.

Market Cap: SAR1.48B

Thob Al Aseel's financial health is underscored by its robust short-term assets of SAR731.6 million, which comfortably exceed both its long-term and short-term liabilities, highlighting strong liquidity. The company has demonstrated consistent profit growth, with earnings increasing by 7.3% over the past year, surpassing industry averages. Despite a low Return on Equity of 14.3%, Thob Al Aseel remains debt-free, eliminating concerns about interest payments or debt coverage by cash flow. Recent executive changes with the appointment of Mr. Khaled Abdullah Al-Omar as CEO may bring strategic shifts to enhance operational efficiency and drive future growth initiatives.

• Take a closer look at Thob Al Aseel's potential here in our financial health report.
• Examine Thob Al Aseel's past performance report to understand how it has performed in prior years.

Taking Advantage

• Get an in-depth perspective on all 79 Middle Eastern Penny Stocks by using our screener here.
• Searching for a Fresh Perspective? Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

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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