The Middle Eastern stock markets have been navigating a mixed landscape, with concerns over U.S. tariff policies and potential economic slowdowns influencing investor sentiment. Amidst these broader market dynamics, penny stocks continue to capture attention for their unique investment opportunities. Although the term "penny stocks" might seem outdated, these lower-priced shares often represent smaller or newer companies that can offer significant growth potential when backed by strong financial health.
Top 10 Penny Stocks In The Middle East
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR4.08
SAR1.63B
★★★★★★
Keir International (SASE:9542)
SAR4.15
SAR498M
★★★★★☆
Alarum Technologies (TASE:ALAR)
₪3.077
₪213.93M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.956
₪2.97B
★★★★★☆
Tarya Israel (TASE:TRA)
₪0.59
₪175.15M
★★★★★☆
Tgi Infrastructures (TASE:TGI)
₪2.173
₪161.55M
★★★★★★
Union Properties (DFM:UPP)
AED0.556
AED2.37B
★★★★☆☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
Overview: Union Properties (ticker: DFM:UPP) is a company that invests in and develops properties, with a market cap of AED2.37 billion.
Operations: The company's revenue is derived from three main segments: Contracting (AED25.61 million), Real Estate (AED47.31 million), and Goods and Services (AED455.83 million).
Market Cap: AED2.37B
Union Properties has faced challenges with negative earnings growth and a volatile share price, yet it remains a potentially interesting option among penny stocks. The company's debt to equity ratio has improved significantly over the past five years, now standing at 18.8%, although its debt is not well covered by operating cash flow. Despite reporting sales of AED528.75 million for 2024, net income dropped to AED275.64 million due to large one-off gains impacting results. Union Properties' short-term assets comfortably cover both short and long-term liabilities, suggesting manageable financial health amidst ongoing restructuring efforts to address accumulated losses.
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 TRY12.84 billion.
Operations: The company generates revenue primarily from its Residential Real Estate Developments segment, amounting to TRY13.44 billion.
Market Cap: TRY12.84B
Sinpas Gayrimenkul Yatirim Ortakligi has demonstrated significant earnings growth, reporting a net income of TRY5.23 billion for 2024, up from TRY1.69 billion the previous year. Despite this growth, its profit margins have declined to 38.9% from last year's 68.3%, influenced by large one-off gains of TRY5.3 billion impacting results. The company's short-term assets exceed both short and long-term liabilities, indicating solid financial health despite interest payments not being well covered by EBIT at 2.3 times coverage. Its debt management has improved significantly over five years with a reduced debt to equity ratio now at 11.1%.
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 ₪213.93 million.
Operations: Alarum Technologies generates revenue primarily from web data collection ($30.91 million), with additional income from consumer internet access services ($0.87 million) and advertising services ($0.038 million).
Market Cap: ₪213.93M
Alarum Technologies has shown profitability with a net income of US$5.78 million for 2024, reversing a prior loss, and maintains strong financial health as short-term assets exceed liabilities. The firm's debt is well-covered by operating cash flow, and it trades at a good value relative to its peers. However, the company's share price has been highly volatile recently. Despite filing a $12 million shelf registration for common stock issuance, legal challenges have emerged with class action lawsuits alleging misleading investor communications and overstated business prospects impacting revenue growth expectations last year.
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 DFM:UPP IBSE:SNGYO and TASE:ALAR.
This article was originally published by Simply Wall St.
