Amid ongoing geopolitical tensions, most Gulf markets have recently retreated, influenced by stalled US-Iran peace efforts and disruptions in the Strait of Hormuz. In such a climate, investors often look for stocks that offer both affordability and growth potential. Penny stocks, while sometimes considered a relic of past market eras, continue to hold promise when backed by strong financials. These smaller or newer companies can provide unique opportunities for those seeking under-the-radar investments with the potential for long-term success.

Top 10 Penny Stocks In The Middle East

Name	Share Price	Market Cap	Rewards & Risks
Al-Modawat Specialized Medical (SASE:9594)	SAR4.20	SAR299.01M	✅ 2 ⚠️ 4 View Analysis >
Thob Al Aseel (SASE:4012)	SAR3.80	SAR1.52B	✅ 2 ⚠️ 1 View Analysis >
Amanat Holdings PJSC (DFM:AMANAT)	AED1.26	AED3.15B	✅ 3 ⚠️ 3 View Analysis >
Alarum Technologies (TASE:ALAR)	₪2.052	₪150.62M	✅ 1 ⚠️ 4 View Analysis >
Al Wathba National Insurance Company PJSC (ADX:AWNIC)	AED3.10	AED641.7M	✅ 2 ⚠️ 3 View Analysis >
Al Waha Capital PJSC (ADX:WAHA)	AED1.88	AED3.56B	✅ 2 ⚠️ 2 View Analysis >
Union Properties (DFM:UPP)	AED0.75	AED3.2B	✅ 4 ⚠️ 1 View Analysis >
Abu Dhabi National Hotels Company PJSC (ADX:ADNH)	AED0.376	AED4.8B	✅ 2 ⚠️ 2 View Analysis >
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)	AED1.01	AED614.34M	✅ 2 ⚠️ 2 View Analysis >
Tgi Infrastructures (TASE:TGI)	₪2.374	₪186.36M	✅ 2 ⚠️ 3 View Analysis >

Let's review some notable picks from our screened stocks.

Apex Investment PSC (ADX:APEX)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Apex Investment PSC offers catering services to both public and private organizations in the United Arab Emirates, with a market cap of AED11.48 billion.

Operations: The company's revenue is primarily derived from its Supply segment at AED 607.37 million, followed by Manufacturing at AED 217.76 million, Facility Management Services at AED 111.06 million, and Contracting at AED 38.75 million.

Market Cap: AED11.48B

Apex Investment PSC, with a market cap of AED11.48 billion, derives most of its revenue from the Supply segment. Despite being debt-free and having short-term assets (AED1.6 billion) exceeding liabilities, Apex faced a significant one-off loss of AED81.3 million last year, impacting its financial results for 2025. The company's net income decreased to AED38 million from AED75.64 million the previous year, with profit margins dropping to 4.4%. Earnings growth has been negative recently; however, Apex has become profitable over five years with earnings growing by 26% annually despite high share price volatility and low return on equity at 1.9%.

Bank Of Sharjah P.J.S.C (ADX:BOS)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Bank Of Sharjah P.J.S.C., along with its subsidiaries, offers commercial and investment banking products and services in the United Arab Emirates, with a market cap of AED3.75 billion.

Operations: The company's revenue is derived from two main segments: Commercial Banking, which contributes AED564.94 million, and Investment and Treasury, accounting for AED321.34 million.

Market Cap: AED3.75B

Bank Of Sharjah P.J.S.C., with a market cap of AED3.75 billion, has shown significant earnings growth, reporting a net income of AED729 million for 2025, up from AED385 million the previous year. The bank's net profit margins improved to 82.3%, driven by strong performance in its Commercial Banking and Investment segments. Despite high bad loans at 8.8% and an inexperienced management team, the company maintains stable weekly volatility (4%) and appropriate funding levels with an 87% Loans to Deposits ratio. A proposed cash dividend distribution of AED195 million for 2025 reflects ongoing shareholder returns amid these dynamics.

Batic Investments and Logistics (SASE:4110)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Batic Investments and Logistics Company operates in the real estate, transportation, and security sectors in Saudi Arabia with a market cap of SAR1.33 billion.

Operations: The company has not reported any specific revenue segments.

Market Cap: SAR1.33B

Batic Investments and Logistics has demonstrated financial improvement, reporting a net income of SAR26.15 million for 2025, a turnaround from the previous year's loss. The company's market cap is SAR1.33 billion, and it has satisfactory debt levels with a net debt to equity ratio of 9.2%. Short-term assets cover both short-term and long-term liabilities, though interest payments are not well covered by EBIT (2x). Recent board restructuring could influence strategic direction as new members bring diverse expertise in finance, energy, and capital markets. However, the board's inexperience may pose challenges in executing these strategies effectively.

Taking Advantage

• Unlock our comprehensive list of 76 Middle Eastern Penny Stocks by clicking here.
• Ready For A Different Approach? AI is about to change healthcare. These 127 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.