Middle East Hidden Gems Featuring Emirates Insurance Company P.J.S.C And 2 Promising Small Caps

As the Middle East markets navigate a landscape shaped by mixed signals from global economic indicators and fluctuating oil prices, investors are keenly watching how these factors influence regional equities. In this dynamic environment, identifying promising stocks often involves looking beyond headline indices to discover companies with strong fundamentals and growth potential, such as Emirates Insurance Company P.J.S.C and other promising small-cap players in the region.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Click here to see the full list of 205 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

Emirates Insurance Company P.J.S.C (ADX:EIC)

Simply Wall St Value Rating: ★★★★★★

Overview: Emirates Insurance Company P.J.S.C. operates in the general insurance and reinsurance sectors across the United Arab Emirates, the United States, and Europe, with a market capitalization of AED1.10 billion.

Operations: EIC generates revenue primarily from underwriting, contributing AED2.36 billion, and investments, adding AED88.37 million.

Emirates Insurance Company, a smaller player in the Middle Eastern insurance market, showcases a compelling financial profile with no debt and high-quality earnings. Over the past five years, it has achieved an average annual earnings growth of 2.2%, although its recent 7.6% growth lagged behind the industry’s 9.8%. The company’s price-to-earnings ratio stands at 8.6x, which is attractive compared to the AE market's 12.4x benchmark. Recent results highlight significant improvement with net income for Q2 reaching AED 35 million from AED 11 million last year, reflecting robust performance despite moderate sector growth challenges.

• Click to explore a detailed breakdown of our findings in Emirates Insurance Company P.J.S.C's health report.

• Gain insights into Emirates Insurance Company P.J.S.C's past trends and performance with our Past report.

Al Rajhi REIT Fund (SASE:4340)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Al Rajhi REIT Fund, listed on Tadawul, is a Sharia-compliant investment vehicle focused on generating periodic income through investments in income-generating real estate assets in Saudi Arabia, with a market cap of SAR2.30 billion.

Operations: The fund's primary revenue stream is derived from its commercial real estate investments, generating SAR258.85 million.

Al Rajhi REIT Fund, a notable player in the Middle East's real estate scene, has shown resilience with a debt-to-equity ratio reduction from 51.8% to 39.9% over five years. Its earnings growth of 30.6% last year outpaced the REIT industry average of -36.7%. The fund's net income for the first half of 2025 was SAR71.18 million, slightly down from SAR71.58 million in the previous year despite stable revenue figures around SAR117 million annually. A new lease agreement promises a significant boost, increasing rental income by 55%, likely enhancing future financial performance positively from Q3 2025 onward.

• Navigate through the intricacies of Al Rajhi REIT Fund with our comprehensive health report here.

• Gain insights into Al Rajhi REIT Fund's historical performance by reviewing our past performance report.

Gas Arabian Services (SASE:9528)

Simply Wall St Value Rating: ★★★★★★

Overview: Gas Arabian Services Company operates in the Kingdom of Saudi Arabia, offering products and services in automation, instrumentation, field services, mechanical, and piping sectors with a market capitalization of SAR2.71 billion.

Operations: Gas Arabian Services generates revenue primarily from three segments: Trading (SAR518.50 million), Manufacturing (SAR62.05 million), and Technical Services (SAR672.45 million).

Gas Arabian Services, a rising player in the Middle Eastern market, has shown robust growth with earnings surging 51% over the past year, outpacing industry averages. The company boasts a debt-free balance sheet, contrasting its position five years ago when it had a debt-to-equity ratio of 13.4%. Its price-to-earnings ratio of 19.6x suggests good value compared to the broader SA market at 21.5x. Recently added to prominent indices like S&P Pan Arab Composite and S&P Global BMI Index, Gas Arabian reported second-quarter sales of SAR 319.79 million and net income of SAR 38.82 million, reflecting solid financial health and promising prospects ahead.

• Unlock comprehensive insights into our analysis of Gas Arabian Services stock in this health report.

• Learn about Gas Arabian Services' historical performance.

Seize The Opportunity

• Delve into our full catalog of 205 Middle Eastern Undiscovered Gems With Strong Fundamentals here.
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Curious About Other Options?

• 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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