Identifying Undiscovered Gems in the Middle East for June 2025
As geopolitical tensions in the Middle East continue to influence market dynamics, many Gulf markets have seen a retreat, with indices such as Dubai's main share index and Abu Dhabi's index experiencing declines. Despite these challenges, the search for undiscovered gems remains crucial, as identifying stocks with strong fundamentals and growth potential can provide valuable opportunities even amidst broader market volatility.
Name
Debt To Equity
Revenue Growth
Earnings Growth
Health Rating
MOBI Industry
6.50%
5.60%
24.00%
★★★★★★
Alf Meem Yaa for Medical Supplies and Equipment
NA
17.03%
18.37%
★★★★★★
Baazeem Trading
8.48%
-2.02%
-2.70%
★★★★★★
Sure Global Tech
NA
11.95%
18.65%
★★★★★★
Saudi Azm for Communication and Information Technology
2.07%
16.18%
21.11%
★★★★★★
Nofoth Food Products
NA
15.75%
27.63%
★★★★★★
National General Insurance (P.J.S.C.)
NA
14.55%
29.05%
★★★★★☆
National Corporation for Tourism and Hotels
19.25%
0.67%
4.89%
★★★★☆☆
Waja
23.81%
98.44%
14.54%
★★★★☆☆
Saudi Chemical Holding
79.49%
16.57%
44.01%
★★★★☆☆
Click here to see the full list of 217 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Taaleem Holdings PJSC is a company that provides and invests in education services in the United Arab Emirates, with a market capitalization of AED3.79 billion.
Operations: Revenue for Taaleem primarily comes from school operations, amounting to AED1.05 billion.
Taaleem Holdings PJSC, a nimble player in the UAE's education sector, has demonstrated robust earnings growth of 16.9% over the past year, outpacing the industry average of 6.7%. With sales for Q2 2025 reaching AED 343.74 million compared to AED 282.54 million previously, revenue and net income figures also showed positive trends at AED 20.1 million and AED 92.02 million respectively for the quarter ended February 28, though net income was slightly lower than last year's same period at AED 92.19 million. The company's debt-to-equity ratio has risen from 19.9% to a more leveraged position of 29.1%, yet its interest obligations are comfortably covered by EBIT at nearly fifty times over—demonstrating financial resilience amidst strategic expansion efforts targeting premium segments despite potential margin pressures from higher costs associated with these initiatives.
Taaleem Holdings PJSC plans to add 10,000 seats by 2026 through strategic expansion. Click here to explore the full narrative on Taaleem's growth strategy and market positioning.
Simply Wall St Value Rating: ★★★★★★
Overview: Ackerstein Group Ltd is involved in production, infrastructure, construction, and development activities in Israel and the United States, with a market capitalization of ₪2.55 billion.
Operations: Ackerstein Group's revenue primarily comes from its Engineering Segment, generating ₪560.42 million, followed by the Industry Sector at ₪289.34 million and the Real Estate Sector at ₪47.92 million. The Industry Sector Abroad contributes an additional ₪57.57 million to the total revenue stream.
Ackerstein Group, a notable player in the Middle East's basic materials sector, showcases impressive financial health with earnings growth of 48.8% over the past year, outpacing the industry average of -6.7%. The company's interest payments are well-covered by EBIT at 50.8 times, indicating strong operational efficiency. A significant one-off gain of ₪62.3 million impacted its recent financial results, highlighting some volatility in earnings quality. Over five years, Ackerstein has reduced its debt to equity ratio from 43.3% to a satisfactory 12%, reflecting prudent debt management strategies amidst a highly volatile share price environment recently observed over three months.
Take a closer look at Ackerstein Group's potential here in our health report.
Gain insights into Ackerstein Group's historical performance by reviewing our past performance report.
Simply Wall St Value Rating: ★★★★★☆
Overview: Y.D. More Investments Ltd is a privately owned investment manager with a market capitalization of ₪1.77 billion, focusing on various financial management services.
Operations: The company's primary revenue streams include management of provident and pension funds, generating ₪540.82 million, and mutual fund management with revenues of ₪231.26 million. Investment portfolio management contributes an additional ₪34.40 million in revenue.
Y.D. More Investments, a nimble player in the Middle East market, has shown robust growth with earnings up 38.9% over the past year, outpacing the industry average of 28.5%. The company's net income for Q1 2025 surged to ILS 31.62 million from ILS 17.11 million a year prior, while revenue climbed to ILS 230.15 million compared to last year's ILS 188.26 million. Despite a volatile share price recently, Y.D.'s debt-to-equity ratio rose from just 0.3% to an elevated level of 62.7% over five years, indicating increased leverage but also potential for strategic expansion and investment opportunities in its sector.
Click here and access our complete health analysis report to understand the dynamics of Y.D. More Investments.
Understand Y.D. More Investments' track record by examining our Past report.
Delve into our full catalog of 217 Middle Eastern Undiscovered Gems With Strong Fundamentals here.
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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.
Companies discussed in this article include DFM:TAALEEM TASE:ACKR and TASE:MRIN.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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Erdogan vows to boost Turkey's missile production as Israel-Iran war escalates
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