Middle Eastern Penny Stocks Spotlight: Al Waha Capital PJSC And Two Others

Simply Wall St · 07/04 03:04

The Middle Eastern stock markets have shown resilience, with major Gulf shares rising as steady Purchasing Managers' Indices (PMIs) signal growth and investor optimism around global trade deals. For those exploring beyond the well-known giants, penny stocks can present intriguing opportunities. Although the term 'penny stock' may seem outdated, these smaller or newer companies often hold potential for significant returns when underpinned by strong financials. In this article, we explore three such stocks in the Middle East that stand out for their balance sheet strength and potential for growth.

Top 10 Penny Stocks In The Middle East

Name Share Price Market Cap Rewards & Risks
Menara Ventures Xl - Limited Partnership (TASE:MNRA) ₪2.52 ₪11.58M ✅ 1 ⚠️ 3 View Analysis >
Thob Al Aseel (SASE:4012) SAR4.16 SAR1.66B ✅ 2 ⚠️ 1 View Analysis >
Amanat Holdings PJSC (DFM:AMANAT) AED1.09 AED2.71B ✅ 2 ⚠️ 1 View Analysis >
Alarum Technologies (TASE:ALAR) ₪4.669 ₪328.38M ✅ 3 ⚠️ 2 View Analysis >
E7 Group PJSC (ADX:E7) AED1.10 AED2.2B ✅ 3 ⚠️ 2 View Analysis >
Katmerciler Arac Üstü Ekipman Sanayi ve Ticaret (IBSE:KATMR) TRY1.96 TRY2.11B ✅ 2 ⚠️ 2 View Analysis >
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) AED3.06 AED353.43M ✅ 2 ⚠️ 5 View Analysis >
Dubai Investments PJSC (DFM:DIC) AED2.56 AED10.89B ✅ 2 ⚠️ 3 View Analysis >
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC) AED0.832 AED506.07M ✅ 2 ⚠️ 2 View Analysis >
Tgi Infrastructures (TASE:TGI) ₪2.571 ₪191.13M ✅ 2 ⚠️ 2 View Analysis >

Click here to see the full list of 79 stocks from our Middle Eastern Penny Stocks screener.

Let's explore several standout options from the results in the screener.

Al Waha Capital PJSC (ADX:WAHA)

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

Overview: Al Waha Capital PJSC is a private equity firm that manages assets across various sectors such as financial services, fintech, healthcare, energy, infrastructure, industrial real estate and capital markets, with a market cap of AED2.87 billion.

Operations: The company generates revenue from its Private Investments segment, excluding Waha Land, amounting to AED152.39 million.

Market Cap: AED2.87B

Al Waha Capital PJSC's recent performance reflects a mixed picture for investors interested in penny stocks. The company reported Q1 2025 revenue of AED329.87 million and net income of AED80.98 million, both down from the previous year. Despite high-quality past earnings and an experienced management team, challenges include negative earnings growth over the past year and operating cash flow issues that limit debt coverage. Although its short-term assets significantly exceed liabilities, indicating strong liquidity, the dividend is not well covered by free cash flows. Al Waha's price-to-earnings ratio suggests potential value compared to the broader AE market.

ADX:WAHA Debt to Equity History and Analysis as at Jul 2025
ADX:WAHA Debt to Equity History and Analysis as at Jul 2025

Retailminds Technologies (TASE:RTMD-M)

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

Overview: Retailminds Technologies Ltd offers online shopping services in Israel and has a market cap of ₪12.93 million.

Operations: The company generates revenue of ₪0.72 million from its online retailer segment.

Market Cap: ₪12.93M

Retailminds Technologies Ltd, an online retailer in Israel, operates with a market cap of ₪12.93 million and generates revenue of ₪0.72 million, indicating it is pre-revenue. The company benefits from having no debt and sufficient short-term assets (₪26.6M) to cover liabilities (₪237K), but faces challenges with high volatility and less than a year of cash runway if free cash flow grows at historical rates. Despite being unprofitable with negative return on equity (-29.41%), the management team is experienced, and shareholders have not been diluted over the past year, providing some stability amidst financial constraints.

TASE:RTMD-M Financial Position Analysis as at Jul 2025
TASE:RTMD-M Financial Position Analysis as at Jul 2025

Unicorn Technologies - Limited Partnership (TASE:UNCT)

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

Overview: Unicorn Technologies - Limited Partnership is a principal investment firm headquartered in Tel Aviv, Israel with a market cap of ₪11.24 million.

Operations: Unicorn Technologies - Limited Partnership has not reported any revenue segments.

Market Cap: ₪11.24M

Unicorn Technologies - Limited Partnership, with a market cap of ₪11.24 million, operates as a pre-revenue entity in the Middle East penny stock landscape. The company maintains financial stability with no long-term liabilities and short-term assets (₪13.5M) comfortably exceeding its liabilities (₪425K). Despite being unprofitable and experiencing significant earnings declines over five years, it benefits from an experienced board and a sufficient cash runway for over three years if current cash flow trends persist. Although its share price is highly volatile, shareholders have not faced dilution recently, offering some degree of investment stability amidst these challenges.

TASE:UNCT Debt to Equity History and Analysis as at Jul 2025
TASE:UNCT Debt to Equity History and Analysis as at Jul 2025

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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.