The Middle Eastern stock markets have recently experienced some fluctuations, with ex-dividend stocks impacting indices in the UAE. Despite these challenges, the region continues to offer intriguing investment opportunities, particularly in niche areas like penny stocks. Once considered a buzzword and now more of a niche, penny stocks—typically representing smaller or newer companies—can still provide growth potential when backed by strong financial health and fundamentals.
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)
₪2.357
₪163.44M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.898
₪2.79B
★★★★★☆
Big Tech 50 R&D-Limited Partnership (TASE:BIGT)
₪1.686
₪17.89M
★★★★☆☆
Tarya Israel (TASE:TRA)
₪0.631
₪187.32M
★★★★★☆
Tgi Infrastructures (TASE:TGI)
₪2.299
₪170.91M
★★★★★★
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
AED0.755
AED473.22M
★★★★★★
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
Overview: Finance House P.J.S.C. operates in the United Arab Emirates, offering investment, consumer and commercial financing services, with a market cap of AED620.14 million.
Operations: The company's revenue segments include Commercial and Retail Financing generating AED108.57 million and Investment contributing AED9.67 million.
Market Cap: AED620.14M
Finance House P.J.S.C. recently reported a significant drop in net income to AED15.68 million for 2024 from AED35.98 million the previous year, resulting in a basic loss per share of AED0.01 compared to earnings of AED0.05 last year. Despite being unprofitable, the company has managed to reduce losses at an annual rate of 33.4% over five years and maintains satisfactory debt levels with a net debt to equity ratio of 37.4%. Its short-term assets exceed both long-term and short-term liabilities, providing some financial stability amid high share price volatility over recent months.
Overview: The National Investor Pr. J.S.C., operating in the United Arab Emirates, engages in private equity, real estate investment and consultancy, economic feasibility studies, commercial agencies, and hospitality services with a market cap of AED110.22 million.
Operations: The company has not reported any specific revenue segments.
Market Cap: AED110.22M
National Investor Pr. J.S.C. remains unprofitable, with a net loss of AED 10.9 million for 2024, up from AED 9.11 million the previous year, despite revenue increasing to AED 27.02 million from AED 22.78 million. The company benefits from a strong financial position with more cash than total debt and short-term assets covering both short- and long-term liabilities, suggesting liquidity strength amid its operational challenges. While earnings have declined over the past five years by an annual rate of 14.6%, TNI's experienced board (5.9 years average tenure) and stable weekly volatility offer some stability in this volatile penny stock sector.
Overview: Tarya Israel Ltd, with a market cap of ₪187.32 million, operates an internet platform in Israel through its subsidiaries.
Operations: Tarya Israel Ltd has not reported any specific revenue segments.
Market Cap: ₪187.32M
Tarya Israel Ltd has transitioned to profitability, reporting a net income of ₪10.12 million for 2024, reversing a previous net loss. Despite a decline in sales to ₪52.88 million from the prior year, the company's financial health is robust with short-term assets of ₪50.9 million exceeding both short- and long-term liabilities and cash surpassing total debt. Its return on equity stands out at an impressive 42.1%, though its share price remains highly volatile compared to most Israeli stocks. The board's lack of experience may pose governance challenges despite strong earnings quality and well-covered interest payments by EBIT (5.5x).
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:FH ADX:TNI and TASE:TRA.
