As the Middle East's financial markets experience gains driven by rising oil prices and anticipation of corporate earnings, investors are increasingly turning their attention to small-cap stocks that may offer unique growth opportunities. In this environment, a good stock is often one that can capitalize on regional economic trends and demonstrate resilience amidst market fluctuations.
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% | ★★★★★★ |
| Sure Global Tech | NA | 10.11% | 15.42% | ★★★★★★ |
| Baazeem Trading | 8.48% | -1.74% | -2.37% | ★★★★★★ |
| Qassim Cement | NA | 0.78% | -14.90% | ★★★★★★ |
| MOBI Industry | 18.09% | 6.66% | 22.02% | ★★★★★★ |
| Saudi Azm for Communication and Information Technology | 3.53% | 16.38% | 21.65% | ★★★★★★ |
| Nofoth Food Products | NA | 15.49% | 26.47% | ★★★★★★ |
| Najran Cement | 14.76% | -3.67% | -26.79% | ★★★★★★ |
| National General Insurance (P.J.S.C.) | NA | 14.58% | 25.09% | ★★★★★☆ |
| Etihad Atheeb Telecommunication | 0.97% | 37.69% | 60.25% | ★★★★★☆ |
We'll examine a selection from our screener results.
Lydia Yesil Enerji Kaynaklari (IBSE:LYDYE)
Simply Wall St Value Rating: ★★★★★☆
Overview: Lydia Yesil Enerji Kaynaklari A.S. is involved in the production and sale of electricity and heat energy in Turkey, with a market capitalization of TRY23.68 billion.
Operations: Lydia Yesil Enerji Kaynaklari generates revenue through the production and sale of electricity and heat energy in Turkey. The company has a market capitalization of TRY23.68 billion.
Lydia Yesil Enerji Kaynaklari, a nimble player in the energy sector, has shown impressive growth with earnings surging 714% over the past year, outpacing the industry average. Despite its modest revenue of TRY71 million, this company stands debt-free and profitable. Recent reports highlight a jump in sales to TRY15.58 million for Q2 2025 from TRY7.07 million last year and net income soaring to TRY216.76 million from TRY75.8 million previously. Trading at 13% below estimated fair value, Lydia Yesil Enerji appears well-positioned with high-quality earnings and no debt concerns on the horizon.
Saudi Steel Pipes (SASE:1320)
Simply Wall St Value Rating: ★★★★★★
Overview: Saudi Steel Pipes Company is engaged in the manufacturing and distribution of steel pipes both within Saudi Arabia and internationally, with a market capitalization of SAR2.71 billion.
Operations: Saudi Steel Pipes generates revenue primarily from its steel pipes segment, amounting to SAR1.43 billion. The company's financial performance is characterized by a notable net profit margin trend, reflecting its operational efficiency and cost management strategies.
Saudi Steel Pipes, a smaller player in the industry, has demonstrated a solid financial footing. Over the past five years, earnings have surged 63.8% annually. Despite sales dropping to SAR 336 million from SAR 472 million year-on-year for Q2 2025, net income rose to SAR 70.83 million from SAR 51.76 million due to a one-off gain of SAR53.7M impacting recent results. The company's net debt to equity ratio stands at a satisfactory level of 13.2%, and interest payments are well-covered by EBIT at nine times coverage, indicating robust financial health amidst industry challenges.
Alamar Foods (SASE:6014)
Simply Wall St Value Rating: ★★★★★☆
Overview: Alamar Foods Company operates and manages quick service restaurants across the Middle East, North Africa, and Pakistan, with a market capitalization of SAR1.29 billion.
Operations: Revenue for Alamar Foods primarily comes from its operations in the Kingdom of Saudi Arabia, contributing SAR618.75 million, followed by the Other GCC and Levant regions at SAR213.20 million. North Africa adds SAR98.19 million to the revenue stream.
Alamar Foods, a modest player in the Middle Eastern market, has shown promising financial resilience. Over the past year, earnings surged by 149.1%, outpacing the hospitality industry's growth of 11.7%. The company's debt to equity ratio rose from 0.9 to 2 over five years, yet it remains well-covered with EBIT at 17.3 times interest payments. Recent earnings for Q2 reported sales of SAR 236.7 million and net income of SAR 15.29 million, an improvement from SAR 13.1 million last year, reflecting strong operational performance despite executive changes in its financial team this October.
- Get an in-depth perspective on Alamar Foods' performance by reading our health report here.
Review our historical performance report to gain insights into Alamar Foods''s past performance.
Turning Ideas Into Actions
- Reveal the 208 hidden gems among our Middle Eastern Undiscovered Gems With Strong Fundamentals screener with a single click 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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