The Middle Eastern markets have recently experienced a downturn, with Gulf indices sliding amid fears of a global recession sparked by escalating trade tensions. Despite these challenges, investors continue to explore opportunities in various segments, including penny stocks. Although the term "penny stock" is somewhat outdated, it still represents smaller or less-established companies that can offer significant value when backed by strong financials and growth potential.
Top 10 Penny Stocks In The Middle East
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR3.90
SAR1.56B
★★★★★★
Keir International (SASE:9542)
SAR3.89
SAR466.8M
★★★★★☆
Alarum Technologies (TASE:ALAR)
₪2.379
₪164.96M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.894
₪2.78B
★★★★★☆
Tgi Infrastructures (TASE:TGI)
₪2.158
₪160.43M
★★★★★★
Union Properties (DFM:UPP)
AED0.512
AED2.23B
★★★★☆☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
Overview: Al Waha Capital PJSC is a private equity firm managing assets in sectors like financial services, fintech, healthcare, energy, infrastructure, industrial real estate and capital markets with a market cap of AED2.65 billion.
Operations: The company generates revenue from its Private Investments segment, excluding Waha Land, amounting to AED150.11 million.
Market Cap: AED2.65B
Al Waha Capital PJSC, with a market cap of AED2.65 billion, showcases a mixed financial landscape. Its Price-To-Earnings ratio of 6.9x is attractive compared to the AE market average, yet its dividend yield of 7.04% isn't well covered by free cash flows. The company has reduced its debt-to-equity ratio significantly over five years and possesses more cash than total debt, but negative operating cash flow raises concerns about debt coverage. Recent earnings revealed a decline in net income to AED381.28 million for 2024 from AED440.1 million in the previous year, highlighting challenges in profit growth amidst stable volatility and experienced management oversight.
Overview: Al Ansari Financial Services PJSC, along with its subsidiaries, functions as an integrated financial services company in the United Arab Emirates and internationally, with a market cap of AED7.17 billion.
Operations: No specific revenue segments are reported for Al Ansari Financial Services PJSC.
Market Cap: AED7.17B
Al Ansari Financial Services PJSC, with a market cap of AED7.17 billion, presents a complex picture in the penny stock landscape. Its earnings have grown modestly by 3.7% annually over five years, yet recent net income fell to AED405.85 million from AED495.19 million the previous year, indicating challenges in profit growth despite high-quality earnings and stable volatility (1%). The company maintains more cash than total debt and its operating cash flow comfortably covers debt obligations (321.8%), but its dividend yield of 4.38% isn't well covered by earnings, while short-term assets exceed both short- and long-term liabilities significantly.
Overview: Dubai National Insurance & Reinsurance (P.S.C.) operates in the insurance and reinsurance sector, providing a range of insurance products and services, with a market cap of AED398.48 million.
Operations: The company's revenue is derived from two main segments: Underwriting, which contributes AED269.43 million, and Investments, generating AED37.56 million.
Market Cap: AED398.48M
Dubai National Insurance & Reinsurance (P.S.C.) shows mixed signals in the penny stock arena, with a market cap of AED398.48 million. The company has no debt and its short-term assets far exceed liabilities, indicating financial stability. Earnings grew by 13.6% over the past year, surpassing industry averages, yet five-year earnings have declined by 6.1% annually and recent profit margins decreased slightly from last year. Despite these challenges, the firm reported a net income increase to AED53.54 million for 2024 and announced an annual dividend of AED0.15 per share, reflecting shareholder value focus amidst board inexperience concerns with a tenure average of 2.8 years.
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:WAHA DFM:ALANSARI and DFM:DNIR.
