Most Gulf markets have recently retreated due to geopolitical tensions, despite expectations of U.S. interest rate cuts following slightly lower-than-expected inflation data. In such a climate, investors often seek opportunities that offer potential growth at lower price points, which is where penny stocks come into play. Although the term "penny stocks" may seem outdated, these smaller or newer companies can present unique investment opportunities by combining strong balance sheets and solid fundamentals with the potential for significant upside.
Top 10 Penny Stocks In The Middle East
| Name |
Share Price |
Market Cap |
Financial Health Rating |
| Al-Modawat Specialized Medical (SASE:9594) |
SAR4.43 |
SAR315.3M |
★★★★★☆ |
| Thob Al Aseel (SASE:4012) |
SAR3.39 |
SAR1.35B |
★★★★★★ |
| E7 Group PJSC (ADX:E7) |
AED1.03 |
AED2.1B |
★★★★★★ |
| Sharjah Insurance Company P.S.C (ADX:SICO) |
AED1.52 |
AED228M |
★★★★★★ |
| Al Wathba National Insurance Company PJSC (ADX:AWNIC) |
AED3.50 |
AED724.5M |
★★★★★★ |
| Arabian Pipes (SASE:2200) |
SAR4.90 |
SAR982M |
★★★★★★ |
| Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) |
AED3.25 |
AED384.62M |
★★★★★★ |
| Dubai Investments PJSC (DFM:DIC) |
AED3.62 |
AED15.05B |
★★★★☆☆ |
| Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC) |
AED0.827 |
AED503.03M |
★★★★★★ |
| Tgi Infrastructures (TASE:TGI) |
₪2.578 |
₪202.37M |
★★★★★★ |
Click here to see the full list of 75 stocks from our Middle Eastern Penny Stocks screener.
Let's uncover some gems from our specialized screener.
United Fidelity Insurance Company (P.S.C.)
Simply Wall St Financial Health Rating:★★★★☆☆
Overview:United Fidelity Insurance Company (P.S.C.) operates in the United Arab Emirates, providing a range of general and life insurance services, with a market capitalization of AED241.60 million.
Operations:The company's revenue is derived from three main segments: Consumer insurance at AED255.43 million, Commercial insurance contributing AED127.84 million, and Employee Benefits generating AED226.32 million.
Market Cap:AED241.6M
United Fidelity Insurance Company (P.S.C.) in the UAE, with a market cap of AED241.60 million, is currently unprofitable despite improvements in quarterly net income. Its short-term assets exceed long-term liabilities but fall short of covering its short-term liabilities. The company has more cash than total debt and a cash runway exceeding three years, although its debt-to-equity ratio increased to 41.4% over five years. Management and board members are experienced with average tenures of two and 8.4 years respectively. Recent earnings announcements show progress but challenges remain as losses have grown by an annual rate of 74.9% over five years.
Takaful Emarat - Insurance (PSC)
Simply Wall St Financial Health Rating:★★★★★☆
Overview:Takaful Emarat - Insurance (PSC) operates in the takaful insurance sector within the United Arab Emirates, with a market capitalization of AED365.09 million.
Operations:The company's revenue is divided into segments with AED658.46 million attributable to participants and AED5.46 million attributable to shareholders.
Market Cap:AED365.09M
Takaful Emarat - Insurance (PSC) has shown significant financial improvement, becoming profitable with a net income of AED 23.18 million for the first nine months of 2025, reversing a loss from the previous year. Its short-term assets comfortably cover both short and long-term liabilities, indicating solid financial health. The company's debt management is commendable, as it holds more cash than total debt and has reduced its debt-to-equity ratio significantly over five years. However, its board lacks experience with an average tenure of two years, and the stock remains highly volatile compared to most UAE stocks.
Fonet Bilgi Teknolojileri
Simply Wall St Financial Health Rating:★★★★★☆
Overview:Fonet Bilgi Teknolojileri A.S. offers information technology services in the healthcare sector both in Turkey and internationally, with a market cap of TRY2.72 billion.
Operations:The company generates revenue from its healthcare software segment, amounting to TRY526.48 million.
Market Cap:TRY2.72B
Fonet Bilgi Teknolojileri A.S. has demonstrated strong revenue growth, with sales reaching TRY209.61 million in the third quarter of 2025, up from TRY131.53 million a year earlier. Despite a decline in profit margins from 58.5% to 26.3%, the company maintains high-quality earnings and has not diluted shareholders recently. Its financial stability is supported by cash exceeding total debt and robust operating cash flow covering debt obligations significantly. However, short-term assets do not cover long-term liabilities, indicating potential liquidity concerns despite stable weekly volatility and reduced debt-to-equity ratio over five years.
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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:FIDELITYUNITED DFM:TAKAFUL-EM and IBSE:FONET.
This article was originally published by Simply Wall St .
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