<div id="readability-page-1"><div><p>As most Gulf markets gain ahead of earnings, investors are turning their attention to the potential opportunities within the Middle Eastern stock landscape. While penny stocks might seem like a term from a bygone era, they continue to offer intriguing possibilities for those interested in smaller or newer companies. These stocks often combine affordability with growth potential, particularly when backed by solid financials, making them an area worth exploring for discerning investors.</p><h3>Top 10 Penny Stocks In The Middle East</h3><table><tbody><tr><td><strong>Name</strong></td><td><strong>Share Price</strong></td><td><strong>Market Cap</strong></td><td><strong>Rewards &amp; Risks</strong></td></tr><tr><td>Thob Al Aseel (SASE:4012)</td><td>SAR3.34</td><td>SAR1.34B</td><td>✅ 2 ⚠️ 1 View Analysis &gt;</td></tr><tr><td>Alarum Technologies (TASE:ALAR)</td><td>₪2.702</td><td>₪195.29M</td><td>✅ 2 ⚠️ 3 View Analysis &gt;</td></tr><tr><td>E7 Group PJSC (ADX:E7)</td><td>AED1.07</td><td>AED2.16B</td><td>✅ 3 ⚠️ 2 View Analysis &gt;</td></tr><tr><td>Sharjah Insurance Company P.S.C (ADX:SICO)</td><td>AED1.52</td><td>AED228M</td><td>✅ 2 ⚠️ 2 View Analysis &gt;</td></tr><tr><td>Al Wathba National Insurance Company PJSC (ADX:AWNIC)</td><td>AED3.50</td><td>AED724.5M</td><td>✅ 2 ⚠️ 3 View Analysis &gt;</td></tr><tr><td>Arabian Pipes (SASE:2200)</td><td>SAR4.96</td><td>SAR988M</td><td>✅ 3 ⚠️ 0 View Analysis &gt;</td></tr><tr><td>Dubai National Insurance &amp; Reinsurance (P.S.C.) (DFM:DNIR)</td><td>AED3.00</td><td>AED346.5M</td><td>✅ 2 ⚠️ 5 View Analysis &gt;</td></tr><tr><td>Dubai Investments PJSC (DFM:DIC)</td><td>AED3.87</td><td>AED16.41B</td><td>✅ 2 ⚠️ 3 View Analysis &gt;</td></tr><tr><td>Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)</td><td>AED0.842</td><td>AED512.76M</td><td>✅ 2 ⚠️ 1 View Analysis &gt;</td></tr><tr><td>Tgi Infrastructures (TASE:TGI)</td><td>₪2.495</td><td>₪195.85M</td><td>✅ 2 ⚠️ 2 View Analysis &gt;</td></tr></tbody></table><p>Click here to see the full list of 75 stocks from our  Middle Eastern Penny Stocks screener.</p><p>Here we highlight a subset of our preferred stocks from the screener.</p><h2>Union Insurance Company P.J.S.C (ADX:UNION)</h2><p><strong>Simply Wall St Financial Health Rating:</strong> ★★★★★☆</p><p><strong>Overview:</strong> Union Insurance Company P.J.S.C. provides insurance products across the United Arab Emirates, Gulf Cooperation Council, and internationally with a market cap of AED276 million.</p><p><strong>Operations:</strong> The company's revenue is primarily derived from General Insurance, contributing AED214.72 million, and Life Insurance, which accounts for AED19.2 million.</p><p><strong>Market Cap:</strong> AED276M</p><p>Union Insurance Company P.J.S.C. has demonstrated significant earnings growth, with a 173.5% increase over the past year, outpacing the broader insurance industry. Despite its high volatility and a large one-off gain of AED14.2 million impacting recent results, the company remains debt-free and offers a price-to-earnings ratio of 5.6x, which is below the market average in AE. While short-term assets exceed short-term liabilities significantly, long-term liabilities remain uncovered by these assets. Recent earnings reports show improved net profit margins and increased basic earnings per share compared to last year’s figures.</p><ul><li>Take a closer look at Union Insurance Company P.J.S.C's potential here in our financial health report.</li><li>Assess Union Insurance Company P.J.S.C's previous results with our detailed historical performance reports.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abff0022-9e1c-42bb-b378-78a1f03067b4/chart/financial-position-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abff0022-9e1c-42bb-b378-78a1f03067b4/chart/financial-position-analysis"/><figcaption>ADX:UNION Financial Position Analysis as at Jan 2026</figcaption></figure><h2>Canzon Israel (TASE:CNZN-M)</h2><p><strong>Simply Wall St Financial Health Rating:</strong> ★★★★☆☆</p><p><strong>Overview:</strong> Canzon Israel Ltd is engaged in investing and managing construction projects for residential and commercial purposes in Portugal, with a market cap of ₪5.18 million.</p><p><strong>Operations:</strong> The company's revenue is derived from field services, amounting to ₪0.09 million.</p><p><strong>Market Cap:</strong> ₪5.18M</p><p>Canzon Israel Ltd, with a market cap of ₪5.18 million, is pre-revenue and operates in the construction sector in Portugal. Despite being unprofitable, the company has reduced its losses by 39.3% annually over five years and maintains a satisfactory net debt to equity ratio of 8.6%. Recent private placements raised ₪270,000, potentially extending its cash runway. However, short-term liabilities exceed assets significantly (₪1.6M vs ₪226K), indicating liquidity challenges. The board's average tenure of 5.4 years suggests experienced governance amidst high share price volatility over recent months.</p><ul><li>Jump into the full analysis health report here for a deeper understanding of Canzon Israel.</li><li>Gain insights into Canzon Israel's past trends and performance with our report on the company's historical track record.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/154593f1-8190-4f42-a4dc-f8ab66314bc9/chart/financial-position-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/154593f1-8190-4f42-a4dc-f8ab66314bc9/chart/financial-position-analysis"/><figcaption>TASE:CNZN-M Financial Position Analysis as at Jan 2026</figcaption></figure><h2>Inter Industries Plus (TASE:ININ)</h2><p><strong>Simply Wall St Financial Health Rating:</strong> ★★★★★★</p><p><strong>Overview:</strong> Inter Industries Plus Ltd., with a market cap of ₪101.50 million, operates in the energy and infrastructure sectors in Israel through its subsidiaries.</p><p><strong>Operations:</strong> The company generates revenue from two main segments: Projects, contributing ₪333.82 million, and Trade and Services, accounting for ₪365.74 million.</p><p><strong>Market Cap:</strong> ₪101.5M</p><p>Inter Industries Plus Ltd., with a market cap of ₪101.50 million, operates within the energy and infrastructure sectors in Israel. Despite being unprofitable, the company has reduced its net loss from ILS 11.89 million to ILS 4.97 million year-over-year for Q3 2025 while increasing sales to ILS 175.35 million from ILS 167.22 million in the same period last year. It holds sufficient short-term assets (₪332.7M) to cover both short- and long-term liabilities, ensuring financial stability despite ongoing losses. The management team is experienced with an average tenure of two years, although board experience remains limited at 1.9 years on average.</p><ul><li>Get an in-depth perspective on Inter Industries Plus' performance by reading our balance sheet health report here.</li><li>Review our historical performance report to gain insights into Inter Industries Plus' track record.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/fd358175-c911-45a5-9b76-6d651dbb2cf9/chart/financial-position-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/fd358175-c911-45a5-9b76-6d651dbb2cf9/chart/financial-position-analysis"/><figcaption>TASE:ININ Financial Position Analysis as at Jan 2026</figcaption></figure><h2>Seize The Opportunity</h2><ul><li>Navigate through the entire inventory of 75  Middle Eastern Penny Stocks here.</li><li>Want To Explore Some Alternatives? Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 31 best rare earth metal stocks of the very few that mine this essential strategic resource.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

ALAR

<p>As Gulf markets rise ahead of earnings, investors are eyeing Middle Eastern penny stocks for potential opportunities. These stocks, often affordable with growth potential, include notable names like Thob Al Aseel, Alarum Technologies, and Union Insurance Company, which has shown significant earnings growth. Despite some companies facing challenges, such as liquidity issues or ongoing losses, the overall landscape presents intriguing possibilities for discerning investors looking to explore smaller or newer companies in the region.</p>

Middle Eastern Penny Stocks To Watch In January 2026