The Middle Eastern stock markets have recently shown resilience, with Gulf bourses rebounding alongside global shares and indices like Saudi Arabia's benchmark experiencing notable recovery. For investors looking beyond well-known names, penny stocks—often representing smaller or newer companies—remain an intriguing area of investment. Despite the term's historical connotations, these stocks can offer substantial opportunities when backed by strong financials and growth potential. In this article, we explore three such penny stocks in the Middle East that combine balance sheet strength with promising prospects for those interested in uncovering hidden value.
Top 10 Penny Stocks In The Middle East
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR3.93
SAR1.57B
★★★★★★
Keir International (SASE:9542)
SAR3.88
SAR465.6M
★★★★★☆
Alarum Technologies (TASE:ALAR)
₪2.361
₪163.71M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.908
₪2.82B
★★★★★☆
Tgi Infrastructures (TASE:TGI)
₪2.184
₪162.36M
★★★★★★
Union Properties (DFM:UPP)
AED0.511
AED2.19B
★★★★☆☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
Overview: Duran Dogan Basim ve Ambalaj Sanayi A.S. operates in the packaging industry, offering products across Turkey and various international markets, with a market cap of TRY1.87 billion.
Operations: The company generates revenue solely from its Packaging & Containers segment, amounting to TRY2.00 billion.
Market Cap: TRY1.87B
Duran Dogan Basim ve Ambalaj Sanayi A.S., with a market cap of TRY1.87 billion, operates in the packaging industry and reported revenue of TRY2.00 billion for 2024, though it incurred a net loss of TRY159.2 million compared to a profit the previous year. The company's debt situation has improved significantly over five years, reducing its debt-to-equity ratio from 156.8% to 37.6%, and its net debt is satisfactorily covered by operating cash flow at 45.1%. While unprofitable, Duran Dogan has reduced losses annually by 26.2% over five years and maintains seasoned board leadership with an average tenure of nearly 11 years.
Overview: Matricelf Ltd (TASE:MTLF) is a biotechnology company focused on developing a platform for autologous tissue engineering to address various medical conditions, with a market cap of ₪46.16 million.
Operations: Matricelf Ltd has not reported any revenue segments.
Market Cap: ₪46.16M
Matricelf, a biotechnology firm with a market cap of ₪46.16 million, is currently pre-revenue and unprofitable, focusing on pioneering regenerative therapies. A recent collaboration with Cellino aims to advance personalized spinal cord injury treatments by integrating cutting-edge biomanufacturing technologies. This strategic partnership has enabled Matricelf to transform induced pluripotent stem cells into functional neural tissues, marking significant progress in regenerative medicine. Despite having no debt and short-term assets exceeding liabilities, the company faces financial constraints with less than a year of cash runway. Its management team is experienced; however, the board lacks tenure depth.
Overview: Ratio Petroleum Energy - Limited Partnership is involved in the exploration, development, and production of oil and gas, with a market capitalization of ₪67.45 million.
Operations: No revenue segments have been reported for this company.
Market Cap: ₪67.45M
Ratio Petroleum Energy - Limited Partnership, with a market cap of ₪67.45 million, is pre-revenue and currently unprofitable, reporting a net loss of US$4.18 million for 2024. Despite its financial challenges, the company benefits from being debt-free and having short-term assets ($5.1M) that cover both short-term ($1.1M) and long-term liabilities ($131K). However, it faces volatility issues with a fluctuating share price over the past months and less than a year of cash runway if free cash flow continues to grow at historical rates. The board is experienced with an average tenure of 8.4 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 IBSE:DURDO TASE:MTLF and TASE:RTPT.
