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Middle Eastern Penny Stocks Under US$40M Market Cap: 3 Companies To Watch

Simply Wall St · 2d ago

As Gulf bourses experience a downturn ahead of key U.S. economic data, investors in the Middle East are navigating a cautious market landscape. Despite current challenges, penny stocks remain an intriguing area for those seeking growth opportunities at lower price points. Often representing smaller or newer companies, these stocks can offer significant potential when backed by strong financials and solid fundamentals.

Top 10 Penny Stocks In The Middle East

Name Share Price Market Cap Rewards & Risks
Thob Al Aseel (SASE:4012) SAR3.22 SAR1.29B ✅ 2 ⚠️ 1 View Analysis >
Alarum Technologies (TASE:ALAR) ₪2.63 ₪188.56M ✅ 2 ⚠️ 3 View Analysis >
E7 Group PJSC (ADX:E7) AED1.03 AED2.08B ✅ 3 ⚠️ 2 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) AED3.24 AED670.68M ✅ 2 ⚠️ 3 View Analysis >
Arabian Pipes (SASE:2200) SAR4.90 SAR980M ✅ 3 ⚠️ 0 View Analysis >
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR) AED3.22 AED369.6M ✅ 2 ⚠️ 4 View Analysis >
Dubai Investments PJSC (DFM:DIC) AED3.75 AED15.86B ✅ 2 ⚠️ 3 View Analysis >
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC) AED0.84 AED498.77M ✅ 2 ⚠️ 1 View Analysis >
Tgi Infrastructures (TASE:TGI) ₪2.612 ₪205.04M ✅ 2 ⚠️ 2 View Analysis >

Click here to see the full list of 81 stocks from our Middle Eastern Penny Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Ihlas Gazetecilik (IBSE:IHGZT)

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

Overview: Ihlas Gazetecilik A.S. engages in the publishing, selling, distributing, and marketing of newspapers, books, encyclopedias, brochures, and magazines both in Turkey and internationally with a market cap of TRY1.34 billion.

Operations: The company generates revenue primarily from its newspaper publishing segment, amounting to TRY1.90 billion.

Market Cap: TRY1.34B

Ihlas Gazetecilik A.S. has shown progress in stabilizing its financial position, becoming profitable over the past year despite a large one-off loss impacting recent results. The company is debt-free, with short-term assets exceeding both short- and long-term liabilities, indicating solid liquidity. Its Price-To-Earnings ratio of 4.8x suggests it may be undervalued compared to the broader Turkish market. Recent earnings reports highlight improved sales figures, though net losses persist but have narrowed significantly from previous years. The board's experienced tenure and lack of shareholder dilution further support its potential as a penny stock consideration in the region.

IBSE:IHGZT Financial Position Analysis as at Dec 2025
IBSE:IHGZT Financial Position Analysis as at Dec 2025

Allmed Solutions (TASE:ALMD)

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

Overview: Allmed Solutions Ltd develops, manufactures, and markets minimally invasive medical products across various disciplines both in Israel and internationally, with a market cap of ₪32.77 million.

Operations: Allmed Solutions Ltd has not reported any specific revenue segments.

Market Cap: ₪32.77M

Allmed Solutions Ltd, with a market cap of ₪32.77 million, operates in the medical equipment sector but remains pre-revenue, generating less than US$1 million. Despite being unprofitable and experiencing increased losses at a rate of 49.9% annually over the past five years, it benefits from a strong cash position with sufficient runway for over three years without debt concerns. The management team and board are experienced with average tenures of 3.8 and 6.2 years respectively, while shareholder dilution has not been significant recently. Short-term assets comfortably cover both short- and long-term liabilities, indicating sound liquidity management.

TASE:ALMD Debt to Equity History and Analysis as at Dec 2025
TASE:ALMD Debt to Equity History and Analysis as at Dec 2025

Tgi Infrastructures (TASE:TGI)

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

Overview: Tgi Infrastructures Ltd, along with its subsidiary, specializes in producing, processing, assembling, and marketing magnesium-based mechanical assemblies for the automotive industry in Israel; it has a market cap of ₪205.04 million.

Operations: Tgi Infrastructures generates revenue primarily from two segments: Infrastructure and Energy, contributing ₪79.25 million, and The Metal and Electrical Industries, contributing ₪86.25 million.

Market Cap: ₪205.04M

Tgi Infrastructures, with a market cap of ₪205.04 million, operates in the automotive sector and has demonstrated robust financial stability. Its recent earnings report shows sales of ₪125.07 million for the first nine months of 2025, with net income rising to ₪12.11 million from a year ago. The company maintains strong liquidity, as short-term assets significantly exceed liabilities, and it has effectively reduced its debt-to-equity ratio over five years to 32.5%. Despite an unstable dividend history, Tgi's earnings growth outpaces the industry average and is supported by high-quality earnings and satisfactory interest coverage on debt obligations.

TASE:TGI Debt to Equity History and Analysis as at Dec 2025
TASE:TGI Debt to Equity History and Analysis as at Dec 2025

Seize The Opportunity

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.