The Middle Eastern stock markets have recently experienced a rise, buoyed by hopes for U.S. interest rate cuts, which could have significant implications for the region’s economies due to their currency ties to the U.S. dollar. In this context of shifting monetary policies, penny stocks—though an older term—remain relevant as they represent smaller or newer companies with potential growth opportunities. By focusing on those with strong financials and clear growth paths, investors can uncover hidden value in quality companies; here we explore three such promising penny stocks from the Middle East.
Name
Share Price
Market Cap
Financial Health Rating
Maharah for Human Resources (SASE:1831)
SAR4.79
SAR2.18B
★★★★☆☆
Thob Al Aseel (SASE:4012)
SAR3.70
SAR1.49B
★★★★★★
E7 Group PJSC (ADX:E7)
AED1.54
AED3.08B
★★★★★★
Katmerciler Arac Üstü Ekipman Sanayi ve Ticaret (IBSE:KATMR)
TRY3.12
TRY3.36B
★★★★★☆
Al Wathba National Insurance Company PJSC (ADX:AWNIC)
AED3.74
AED776.25M
★★★★★★
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
AED2.97
AED392.7M
★★★★★★
Dubai Investments PJSC (DFM:DIC)
AED2.88
AED12.2B
★★★★☆☆
Union Properties (DFM:UPP)
AED0.845
AED3.62B
★★★★★☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
Let’s review some notable picks from our screened stocks.
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Gulf Cement Company P.S.C. produces and markets various types of cement both in the United Arab Emirates and internationally, with a market cap of AED403.98 million.
Operations: The company generates revenue primarily from its manufacturing segment, amounting to AED539.36 million.
Market Cap: AED403.98M
Gulf Cement Company P.S.C. has demonstrated resilience despite its current unprofitability, with a significant reduction in net losses over the past year and a positive free cash flow that supports a cash runway exceeding three years. The company’s recent earnings report for the second quarter of 2025 shows an improvement in sales to AED136.05 million from AED103.51 million the previous year, while net loss decreased substantially to AED2.72 million from AED14.9 million. Although its short-term liabilities exceed its short-term assets, Gulf Cement maintains a satisfactory debt level with a net debt to equity ratio of 5.6%.
ADX:GCEM Debt to Equity History and Analysis as at Aug 2025
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Hun Yenilenebilir Enerji Üretim A.S. operates in the renewable energy sector by establishing, constructing, and managing the generation and sale of electrical energy both within Turkey and internationally, with a market capitalization of TRY4.16 billion.
Operations: No specific revenue segments have been reported for Hun Yenilenebilir Enerji Üretim.
Market Cap: TRY4.16B
Hun Yenilenebilir Enerji Üretim A.S. has shown a strong turnaround, becoming profitable in the past year with sales reaching TRY 308.45 million in Q2 2025, up from TRY 263.12 million the previous year. Despite this growth, short-term assets of TRY 428.5 million fall short of covering both its short and long-term liabilities (TRY1.1 billion and TRY2.6 billion respectively). However, its debt is well managed with operating cash flow covering 70% of it and a satisfactory net debt to equity ratio of 24.6%. The Price-To-Earnings ratio at 6.7x suggests potential undervaluation compared to the market average.
IBSE:HUNER Debt to Equity History and Analysis as at Aug 2025
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Tarya Israel Ltd, along with its subsidiaries, operates an internet platform in Israel and has a market cap of ₪153.77 million.
Operations: Tarya Israel Ltd has not reported any revenue segments.
Market Cap: ₪153.77M
Tarya Israel Ltd, with a market cap of ₪153.77 million, recently reported a decline in sales to ₪9.59 million for Q2 2025 from ₪15.35 million the previous year, and a net loss of ₪3.35 million for the first half of 2025 compared to a profit last year. Despite being unprofitable, Tarya has reduced its losses over five years by 41.6% annually and maintains more cash than debt with short-term assets covering both short and long-term liabilities comfortably. The company’s board is experienced, and it has sufficient cash runway exceeding three years based on current free cash flow trends without significant shareholder dilution recently.
TASE:TRA Revenue & Expenses Breakdown as at Aug 2025
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:GCEM IBSE:HUNER and TASE:TRA.
This article was originally published by Simply Wall St.
