Most Gulf markets have recently seen gains due to strong corporate earnings and optimism surrounding a potential U.S.-Iran peace deal. In such a climate, investors often look beyond the major indices to explore opportunities in smaller or newer companies, commonly referred to as penny stocks. While the term may seem outdated, these stocks can still offer surprising value by focusing on those with solid financial foundations and potential for growth.

Top 10 Penny Stocks In The Middle East

Name	Share Price	Market Cap	Rewards & Risks
Alpha Data PJSC (ADX:ALPHADATA)	AED1.48	AED1.47B	✅ 2 ⚠️ 1 View Analysis >
Amanat Holdings PJSC (DFM:AMANAT)	AED1.28	AED3.2B	✅ 3 ⚠️ 3 View Analysis >
Sharjah Insurance Company P.S.C (ADX:SICO)	AED1.52	AED228M	✅ 2 ⚠️ 2 View Analysis >
Al Wathba National Insurance Company PJSC (ADX:AWNIC)	AED3.10	AED641.7M	✅ 2 ⚠️ 3 View Analysis >
Dubai Investments PJSC (DFM:DIC)	AED3.87	AED16.46B	✅ 2 ⚠️ 3 View Analysis >
Al Waha Capital PJSC (ADX:WAHA)	AED1.88	AED3.54B	✅ 2 ⚠️ 2 View Analysis >
Union Properties (DFM:UPP)	AED0.75	AED3.2B	✅ 3 ⚠️ 1 View Analysis >
Abu Dhabi National Hotels Company PJSC (ADX:ADNH)	AED0.377	AED4.75B	✅ 2 ⚠️ 2 View Analysis >
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)	AED1.07	AED650.83M	✅ 2 ⚠️ 2 View Analysis >
Tgi Infrastructures (TASE:TGI)	₪2.401	₪188.48M	✅ 2 ⚠️ 3 View Analysis >

We're going to check out a few of the best picks from our screener tool.

Al Waha Capital PJSC (ADX:WAHA)

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

Overview: Al Waha Capital PJSC, formerly Oasis International Leasing Company P.J.S.C, is a private equity firm specializing in emerging markets and growth investments with a market cap of AED3.54 billion.

Operations: The company's revenue is primarily derived from its Public Markets segment at AED991.18 million, followed by Private Investments (excluding Waha Land) at AED448.89 million, Waha Land at AED80.66 million, and Corporate activities contributing AED3.50 million.

Market Cap: AED3.54B

Al Waha Capital PJSC has demonstrated robust financial performance with a significant earnings increase of 165.6% over the past year, surpassing its five-year average growth rate. The company's debt management is strong, with operating cash flow covering 111.8% of its debt and a reduced debt-to-equity ratio from 101.5% to 11.3%. Despite an unstable dividend history, a recent AED0.10 per share dividend was announced for April 2026. The company also initiated a share buyback program authorized to repurchase up to 10% of its issued capital, reflecting confidence in its financial position and future prospects.

Takaful Emarat - Insurance (PSC) (DFM:TAKAFUL-EM)

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

Overview: Takaful Emarat - Insurance (PSC) operates in the United Arab Emirates, providing takaful insurance services through its subsidiaries, with a market capitalization of AED343.16 million.

Operations: Takaful Emarat - Insurance (PSC) does not report specific revenue segments.

Market Cap: AED343.16M

Takaful Emarat - Insurance (PSC) has shown a positive financial trajectory with net income rising to AED15.86 million for the year ending December 31, 2025, up from AED11.16 million the previous year. The company maintains a solid balance sheet with more cash than total debt and short-term assets of AED938.6 million exceeding both short-term and long-term liabilities. While its earnings growth of 42.1% last year outpaced the insurance industry average, Return on Equity remains low at 8.9%. The board's inexperience is notable, but shareholders have not faced significant dilution recently, indicating stability in equity structure.

Saudi Industrial Export (SASE:4140)

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

Overview: Saudi Industrial Export Company offers supply chain and trade solutions across the Middle East and African regions, with a market capitalization of SAR452.95 million.

Operations: There are no specific revenue segments reported for the company.

Market Cap: SAR452.95M

Saudi Industrial Export Company, with a market cap of SAR452.95 million, is pre-revenue and currently unprofitable, reporting a net loss of SAR24.92 million for 2025. Despite this, the company maintains strong liquidity with short-term assets of SAR96.4 million exceeding liabilities and remains debt-free. Recent strategic moves include a non-binding Memorandum of Understanding with GTRONICS for smart meter projects in Syria, though this has yet to impact finances significantly. The board's inexperience is evident with an average tenure of 1.3 years; however, shareholders have not experienced significant dilution recently, suggesting stability in equity structure.

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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.