Amidst the backdrop of fluctuating oil prices and supply concerns, Middle Eastern markets have experienced notable shifts, with UAE stocks recently sliding due to these pressures. In such a climate, identifying promising investment opportunities requires a keen eye for companies with strong financials and growth potential. While the term “penny stock” might seem outdated, these smaller or newer companies can still offer significant opportunities for investors looking beyond well-known names. We’ll explore three penny stocks that stand out for their financial strength and potential to deliver long-term value.
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR3.55
SAR1.42B
★★★★★★
E7 Group PJSC (ADX:E7)
AED1.08
AED2.16B
★★★★★★
Sharjah Insurance Company P.S.C (ADX:SICO)
AED1.49
AED225M
★★★★★★
Al Wathba National Insurance Company PJSC (ADX:AWNIC)
AED3.39
AED703.8M
★★★★★★
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
AED3.30
AED381.15M
★★★★★★
Dubai Investments PJSC (DFM:DIC)
AED3.33
AED14.12B
★★★★☆☆
Al Dhafra Insurance Company P.S.C (ADX:DHAFRA)
AED4.86
AED486M
★★★★★★
Union Properties (DFM:UPP)
AED0.802
AED2.3B
★★★★★☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
AED0.824
AED501.81M
★★★★★★
Tgi Infrastructures (TASE:TGI)
₪2.669
₪209.51M
★★★★★★
Click here to see the full list of 73 stocks from our Middle Eastern Penny Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Sharjah Insurance Company P.S.C. provides general, property, non-property, and life insurance products in the UAE and internationally, with a market cap of AED225 million.
Operations: The company generates revenue through various underwriting segments, including Fire (AED7.38 million), Marine (AED0.72 million), Others (AED1.64 million), and Motor and Engineering (AED25.47 million).
Market Cap: AED225M
Sharjah Insurance Company P.S.C. has shown a remarkable turnaround with net income reaching AED 19.64 million in Q2 2025, compared to a loss the previous year, and earnings per share improving significantly. The company is debt-free, supported by strong short-term assets exceeding liabilities, and its price-to-earnings ratio (6.3x) suggests it may be undervalued compared to the market average (11.9x). Despite past revenue declines, recent profit growth of over 894% indicates potential for recovery in the penny stock segment of the Middle East market. However, its return on equity remains relatively low at 13%.
ADX:SICO Debt to Equity History and Analysis as at Nov 2025
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Airtouch Solar Ltd specializes in autonomous water-free robotic cleaning solutions for solar panels and has a market cap of ₪21.58 million.
Operations: The company generates revenue of ₪44.24 million from its Industrial Automation & Controls segment.
Market Cap: ₪21.58M
Airtouch Solar Ltd, with a market cap of ₪21.58 million, specializes in autonomous cleaning solutions for solar panels and reported half-year revenue of ₪19.41 million, slightly down from the previous year. Despite being unprofitable with a net loss of ₪3.52 million, the company has not diluted shareholders recently and maintains more cash than debt, indicating financial prudence. Its short-term assets significantly exceed liabilities, providing a stable financial footing despite high share price volatility over recent months. The experienced management team and board suggest competent leadership as it navigates growth challenges in the penny stock landscape of the Middle East market.
TASE:ARTS Financial Position Analysis as at Nov 2025
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Avrot Industries Ltd specializes in the lining and coating of steel pipes in Israel, with a market cap of ₪231.83 million.
Operations: The company’s revenue segments include plastic pipe manufacturing (₪34.74 million), coating and wrapping of steel pipe (₪77.47 million), and subcontractor activity in water and sewage infrastructure (₪21.12 million).
Market Cap: ₪231.83M
Avrot Industries Ltd, with a market cap of ₪231.83 million, demonstrates financial stability in the penny stock arena through its diverse revenue streams: plastic pipe manufacturing (₪34.74 million), steel pipe coating (₪77.47 million), and subcontractor activities (₪21.12 million). The company has transitioned to profitability, reporting net income of ₪0.847 million for the half-year ending June 2025, despite a slight dip in sales to ₪62.57 million from the previous year. Avrot’s short-term assets comfortably cover both short- and long-term liabilities, while its debt is well-managed with satisfactory coverage by operating cash flow and EBIT interest coverage at 5.6 times.
TASE:AVRT Financial Position Analysis as at Nov 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:SICO TASE:ARTS and TASE:AVRT.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
