The Middle Eastern stock markets have recently experienced a downturn, primarily influenced by ex-dividend trading in the UAE and broader economic pressures such as impending global tariffs. Despite these challenges, the region's economy continues to show resilience with Abu Dhabi's GDP growth highlighting underlying strength. In this context, penny stocks—often representing smaller or newer companies—remain an intriguing investment area for those seeking unique opportunities. While once a buzzword, these stocks still hold potential when backed by solid financials and can offer unexpected value and growth prospects.
Top 10 Penny Stocks In The Middle East
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR4.10
SAR1.65B
★★★★★★
Keir International (SASE:9542)
SAR4.40
SAR528M
★★★★★☆
Alarum Technologies (TASE:ALAR)
₪2.303
₪159.69M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.90
₪2.8B
★★★★★☆
Tarya Israel (TASE:TRA)
₪0.60
₪178.12M
★★★★★☆
Tgi Infrastructures (TASE:TGI)
₪2.22
₪165.04M
★★★★★★
Union Properties (DFM:UPP)
AED0.568
AED2.4B
★★★★☆☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
AED0.755
AED473.22M
★★★★★★
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
Overview: National Bank of Umm Al-Qaiwain (PSC) provides retail and corporate banking services in the United Arab Emirates and has a market capitalization of AED4.16 billion.
Operations: The company's revenue is primarily derived from Treasury and Investments, which generated AED375.91 million, and Retail and Corporate Banking, contributing AED284.49 million.
Market Cap: AED4.16B
National Bank of Umm Al-Qaiwain (PSC) has demonstrated stable financial performance, with net income slightly increasing to AED 506.03 million in 2024 from AED 502.61 million the previous year. Despite a low Return on Equity of 8.5%, the bank maintains high-quality earnings and an appropriate Loans to Assets ratio of 43%. The board's experience, with an average tenure of 3.7 years, supports governance stability. However, challenges include a high level of bad loans at 4% and a net profit margin decrease from last year’s figures. Recent approval for an increased cash dividend reflects confidence in its financial health.
Overview: Yesil Yapi Endüstrisi A.S. is a construction company operating both in Turkey and internationally, with a market cap of TRY1.19 billion.
Operations: The company generates revenue from its Heavy Construction segment, amounting to TRY29.58 million.
Market Cap: TRY1.19B
Yesil Yapi Endüstrisi A.S. exhibits characteristics typical of penny stocks, with a market cap of TRY1.19 billion and limited revenue streams, generating less than US$1 million (TRY29.58 million). Despite its high volatility and negative earnings growth over the past year, the company has managed to reduce its debt significantly over five years and maintains more cash than total debt. Its short-term assets exceed liabilities, though long-term liabilities remain uncovered. The price-to-earnings ratio is attractively low compared to the market average, yet profit margins have declined from last year’s performance.
Overview: Micronet Ltd develops, manufactures, and markets mobile computing platforms for fleet and mobile workforce management solutions with a market cap of ₪24.98 million.
Operations: The company generates its revenue from the sale of hardware products amounting to ₪3.33 million.
Market Cap: ₪24.98M
Micronet Ltd, with a market cap of ₪24.98 million, reflects typical penny stock traits. The company reported sales of ₪3.33 million for 2024, showing some revenue generation despite being unprofitable with a net loss of ₪8.46 million. Micronet's financial stability is supported by its debt-free status and sufficient cash runway exceeding three years based on current free cash flow levels. Short-term assets comfortably cover liabilities, although the board's inexperience and high share price volatility present risks. Despite earnings decline over five years at 2.3% annually, recent losses have narrowed compared to the previous year’s results.
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.
Companies discussed in this article include ADX:NBQ IBSE:YYAPI and TASE:MCRNT.
