The Middle Eastern stock markets have been buoyant, with Gulf shares rising as geopolitical tensions ease and Dubai’s index hitting a 17-year high. This positive market sentiment creates an interesting backdrop for exploring investment opportunities in lesser-known stocks. Penny stocks, though an outdated term, still represent smaller or newer companies that can offer surprising value; by focusing on those with strong financials and growth potential, investors may uncover promising opportunities in the region.
Name
Share Price
Market Cap
Financial Health Rating
Terminal X Online (TASE:TRX)
₪4.929
₪626.01M
★★★★★★
Thob Al Aseel (SASE:4012)
SAR4.04
SAR1.62B
★★★★★★
Amanat Holdings PJSC (DFM:AMANAT)
AED1.07
AED2.64B
★★★★★☆
Alarum Technologies (TASE:ALAR)
₪4.722
₪331.42M
★★★★★★
E7 Group PJSC (ADX:E7)
AED1.12
AED2.28B
★★★★★★
Katmerciler Arac Üstü Ekipman Sanayi ve Ticaret (IBSE:KATMR)
TRY1.78
TRY1.92B
★★★★★☆
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
AED3.14
AED386.93M
★★★★★★
Dubai Investments PJSC (DFM:DIC)
AED2.52
AED10.76B
★★★★☆☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
AED0.846
AED515.19M
★★★★★★
Tgi Infrastructures (TASE:TGI)
₪2.53
₪188.09M
★★★★★★
Click here to see the full list of 78 stocks from our Middle Eastern Penny Stocks screener.
Let’s dive into some prime choices out of the screener.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: E7 Group PJSC operates in the commercial printing, packaging, and distribution sectors within the United Arab Emirates, with a market capitalization of AED2.28 billion.
Operations: The company’s revenue is derived from its printing segment, which generated AED611.25 million, and its distribution segment, contributing AED78.65 million.
Market Cap: AED2.28B
E7 Group PJSC, operating in the commercial printing and packaging sectors, has demonstrated financial stability with short-term assets of AED2 billion exceeding liabilities. Despite a decline in Q1 2025 sales to AED113.68 million from AED126.05 million the previous year, E7 remains debt-free and maintains a favorable price-to-earnings ratio of 10.1x compared to the market average. The company recently approved a cash dividend distribution of AED147.1 million, equating to approximately 70% of its distributable net profits for 2024, although this dividend is not well covered by free cash flows. Earnings growth has been significant over five years at an annual rate of over 40%.
ADX:E7 Debt to Equity History and Analysis as at Jun 2025
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Dubai National Insurance & Reinsurance (P.S.C.) operates as a provider of insurance and reinsurance services, with a market cap of AED 386.93 million.
Operations: The company’s revenue is derived from two main segments: Investments, contributing AED 37.56 million, and Underwriting, which accounts for AED 269.43 million.
Market Cap: AED386.93M
Dubai National Insurance & Reinsurance (P.S.C.) presents a mixed picture for investors considering penny stocks. It operates debt-free with short-term assets of AED 956.6 million surpassing liabilities, indicating financial stability. Despite recent earnings growth of 13.6%, the company’s five-year performance shows a decline of 6.1% annually, and its return on equity is low at 6.7%. The price-to-earnings ratio stands attractively below the market average at 7.2x, yet dividend sustainability is questionable due to inadequate free cash flow coverage. Additionally, management and board experience are limited with tenures averaging under three years each.
DFM:DNIR Financial Position Analysis as at Jun 2025
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Escort Teknoloji Yatirim A.S. offers technology-based products, solutions, and services both in Turkey and internationally, with a market cap of TRY2.20 billion.
Operations: The company’s revenue is primarily derived from its operations in Turkey, amounting to TRY369.27 million.
Market Cap: TRY2.2B
Escort Teknoloji Yatirim A.S. presents a complex picture for penny stock investors. With no debt, the company avoids interest concerns, and its short-term assets of TRY26.3 million exceed long-term liabilities of TRY1.8 million. However, short-term liabilities remain uncovered, posing potential liquidity challenges. Recent earnings show a decline in net income to TRY4.49 million from TRY59.4 million year-on-year, highlighting profitability issues despite reduced losses over five years at 23.9% annually. Shareholder dilution has been minimal recently, yet the company remains unprofitable with negative return on equity and limited management data available for assessment.
IBSE:ESCOM Financial Position Analysis as at Jun 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:E7 DFM:DNIR and IBSE:ESCOM.
This article was originally published by Simply Wall St.
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