Undiscovered Gems in Middle East Stocks for July 2025

As Middle Eastern markets experience a rebound driven by strong corporate earnings and optimism from international trade agreements, investors are increasingly turning their attention to the region's promising small-cap stocks. In this dynamic environment, identifying stocks with solid fundamentals and growth potential can be key to uncovering hidden opportunities in the market.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Name Debt To Equity Revenue Growth Earnings Growth Health Rating Baazeem Trading 8.48% -2.02% -2.70% ★★★★★★ Saudi Azm for Communication and Information Technology 2.07% 16.18% 21.11% ★★★★★★ MOBI Industry 6.50% 5.60% 24.00% ★★★★★★ Sure Global Tech NA 11.95% 18.65% ★★★★★★ Nofoth Food Products NA 15.75% 27.63% ★★★★★★ Etihad Atheeb Telecommunication 1.05% 36.24% 62.25% ★★★★★★ Najran Cement 14.20% -2.87% -22.60% ★★★★★★ National General Insurance (P.J.S.C.) NA 14.55% 29.05% ★★★★★☆ National Environmental Recycling 69.43% 43.47% 32.77% ★★★★☆☆ Saudi Chemical Holding 79.49% 16.57% 44.01% ★★★★☆☆

Click here to see the full list of 224 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Bank Of Sharjah P.J.S.C

Simply Wall St Value Rating: ★★★★☆☆

Overview: Bank Of Sharjah P.J.S.C., along with its subsidiaries, offers commercial and investment banking services in the United Arab Emirates and has a market capitalization of AED4.29 billion.

Operations: Bank Of Sharjah generates revenue primarily through its commercial and investment banking services in the UAE. The company's net profit margin reflects its ability to manage costs relative to income, providing insights into profitability trends over time.

In the bustling financial landscape of the Middle East, Bank Of Sharjah P.J.S.C. stands out with its robust growth and strategic positioning. Over the past year, earnings surged by 1067.8%, significantly outpacing the industry average of 14.4%. The bank's liabilities are primarily low risk, with customer deposits making up 84%, offering stability in funding sources. However, a high level of bad loans at 7.6% is notable, though an allowance for bad loans at 86% suggests some prudence in managing these risks. With total assets amounting to AED47.1 billion and a favorable price-to-earnings ratio of 8.9x against the AE market's 13.3x, BOS presents an intriguing opportunity for investors seeking value amidst smaller players in this vibrant region.

Delve into the full analysis health report here for a deeper understanding of Bank Of Sharjah P.J.S.C. Review our historical performance report to gain insights into Bank Of Sharjah P.J.S.C's's past performance.

Story Continues

ADX:BOS Debt to Equity as at Jul 2025

Miahona

Simply Wall St Value Rating: ★★★★☆☆

Overview: Miahona Company Limited operates in the Kingdom of Saudi Arabia, offering water facilities and treatment services with a market capitalization of SAR4.34 billion.

Operations: Miahona generates revenue primarily through its water utilities and wastewater treatment services, amounting to SAR478.66 million.

Miahona is making waves with its recent strategic moves and financial growth. The company's earnings surged 29.1% over the past year, outpacing the Water Utilities industry average of 5.3%. Its net debt to equity ratio has impressively decreased from 194.6% to 102.4% in five years, indicating a significant reduction in leverage, although it remains high at 48.1%. Recent developments include a SAR 0.10 per share dividend announcement and an addendum signed for expansion projects in Uzbekistan, reflecting Miahona's commitment to international growth and sustainable water solutions while maintaining high-quality earnings with EBIT covering interest payments by a factor of 10x.

Get an in-depth perspective on Miahona's performance by reading our health report here. Gain insights into Miahona's historical performance by reviewing our past performance report.SASE:2084 Earnings and Revenue Growth as at Jul 2025

Formula Systems (1985)

Simply Wall St Value Rating: ★★★★★★

Overview: Formula Systems (1985) Ltd. operates through its subsidiaries to offer a range of services including proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, as well as computer infrastructure and integration solutions, with a market capitalization of ₪6.65 billion.

Operations: Formula Systems generates revenue primarily through software solutions and IT professional services. The company has a market capitalization of approximately ₪6.65 billion.

Formula Systems, a notable player in the IT sector, has demonstrated solid financial health with its debt-to-equity ratio dropping from 62.6% to 33.7% over five years. The company's earnings grew by 26.2% last year, outpacing the industry average of 25.1%. Trading at a significant discount of 45.4% below estimated fair value, it offers potential upside for investors seeking undervalued opportunities in the Middle East market. Recent earnings showed sales rising to $754 million from $698 million and net income increasing to $19 million from $17 million year-over-year, reflecting consistent growth despite delayed SEC filings earlier this year.

Click here and access our complete health analysis report to understand the dynamics of Formula Systems (1985). Gain insights into Formula Systems (1985)'s past trends and performance with our Past report.TASE:FORTY Earnings and Revenue Growth as at Jul 2025

Turning Ideas Into Actions

Click this link to deep-dive into the 224 companies within our Middle Eastern Undiscovered Gems With Strong Fundamentals screener. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Curious About Other Options?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.

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:BOS SASE:2084 and TASE:FORTY.

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