As Gulf bourses display mixed results, with investors on the lookout for new catalysts amid fluctuating oil prices and shifting global trade dynamics, attention turns to the potential of smaller market players. Penny stocks, a term that may seem outdated, still hold relevance as they often represent smaller or newer companies with significant growth potential. This article will explore three such stocks from the Middle East that combine financial strength with promising opportunities for investors seeking hidden value.
Top 10 Penny Stocks In The Middle East
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR4.17
SAR1.67B
★★★★★★
Keir International (SASE:9542)
SAR3.95
SAR474M
★★★★★☆
Alarum Technologies (TASE:ALAR)
₪2.797
₪195.88M
★★★★★★
Terminal X Online (TASE:TRX)
₪4.535
₪575.97M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.927
₪2.88B
★★★★★☆
Tgi Infrastructures (TASE:TGI)
₪2.207
₪164.07M
★★★★★★
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
AED0.701
AED426.39M
★★★★★★
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
Overview: Gulf Pharmaceutical Industries P.S.C., along with its subsidiaries, operates in the manufacturing and sale of medicines, drugs, and various pharmaceutical, cosmetic, and medical compounds across the United Arab Emirates, other GCC countries, and internationally with a market cap of AED1.59 billion.
Operations: The company's revenue is primarily derived from its Manufacturing segment, which generated AED864.9 million, and its Planet segment, contributing AED732.9 million.
Market Cap: AED1.59B
Gulf Pharmaceutical Industries P.S.C. has demonstrated significant financial improvement, becoming profitable over the past year with a net income of AED 140.9 million in Q1 2025, up from AED 1.9 million the previous year. The company maintains strong short-term asset coverage over both its short and long-term liabilities, and its debt is well managed with a satisfactory net debt to equity ratio of 4.8%. Despite low return on equity at 2.4%, earnings quality remains high, supported by stable weekly volatility and reduced debt levels from previous years, reflecting prudent financial management amidst growing revenues forecasted at 6.91% annually.
Overview: Sinpas Gayrimenkul Yatirim Ortakligi, originally established as Sinpas Insaat in 2006 and transformed into a Real Estate Investment Partnership in 2007, operates in the real estate sector with a market capitalization of TRY15.08 billion.
Operations: The company generates revenue of TRY13.44 billion from its residential real estate developments segment.
Market Cap: TRY15.08B
Sinpas Gayrimenkul Yatirim Ortakligi has shown impressive earnings growth, with a 210.1% increase over the past year, outpacing its five-year average of 33.4%. The company's debt management is robust, evidenced by a net debt to equity ratio of 11.1%, and its operating cash flow comfortably covers debt obligations at 33.3%. However, interest coverage remains a concern at only 2.3 times EBIT. Despite large one-off gains impacting recent financial results and declining profit margins from last year, the company trades at an attractive price-to-earnings ratio of 2.9x compared to the broader market's 19.1x.
Overview: Alarum Technologies Ltd. offers web data collection solutions across multiple regions including the Americas, Europe, Southeast Asia, the Middle East, and Africa, with a market cap of ₪195.88 million.
Operations: Alarum Technologies generates revenue from web data collection ($30.91 million), advertising services ($0.04 million), and consumer internet access ($0.87 million).
Market Cap: ₪195.88M
Alarum Technologies, with a market cap of ₪195.88 million, has demonstrated profitability with earnings of US$5.78 million for 2024, rebounding from a previous net loss. Its revenue streams are diversified across web data collection and consumer internet access. The company’s debt management is strong, with cash exceeding total debt and operating cash flow covering debt by over 900%. However, the stock remains highly volatile and faces legal challenges due to a class action lawsuit in the U.S., which could impact investor sentiment despite its solid financial footing and high return on equity at 21.9%.
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:JULPHAR IBSE:SNGYO and TASE:ALAR.
This article was originally published by Simply Wall St.
