Discovering Undiscovered Gems in the Middle East December 2025

As the Middle East markets navigate a period of cautious investor sentiment, influenced by U.S. economic data and recent interest rate cuts, opportunities for discerning investors are emerging amidst the muted performance in Gulf indices. In this environment, identifying stocks with strong fundamentals and potential for growth can be particularly rewarding, especially as these companies may offer resilience and value despite broader market uncertainties.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Qassim Cement	NA	4.02%	-11.40%	★★★★★★
Sure Global Tech	NA	10.11%	15.42%	★★★★★★
MOBI Industry	18.09%	6.66%	22.02%	★★★★★★
Nofoth Food Products	NA	15.49%	26.47%	★★★★★★
Saudi Azm for Communication and Information Technology	3.26%	17.17%	23.30%	★★★★★★
Najran Cement	14.49%	-4.20%	-30.16%	★★★★★★
Etihad GO Telecom	0.85%	38.36%	57.78%	★★★★★☆
Amir Marketing and Investments in Agriculture	32.43%	3.87%	6.98%	★★★★☆☆
National Environmental Recycling	69.43%	43.47%	32.77%	★★★★☆☆
Birikim Varlik Yonetim Anonim Sirketi	59.38%	42.42%	36.01%	★★★★☆☆

Click here to see the full list of 186 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Abu Dhabi National Insurance Company PJSC (ADX:ADNIC)

Simply Wall St Value Rating: ★★★★★☆

Overview: Abu Dhabi National Insurance Company PJSC offers a range of insurance and reinsurance products to both individuals and businesses in the UAE and abroad, with a market capitalization of AED4 billion.

Operations: ADNIC generates revenue primarily from its consumer and commercial insurance segments, with AED4.34 billion from consumer and AED5.39 billion from commercial lines. The company's net profit margin is a key indicator of financial performance, reflecting the efficiency of its operations in managing costs relative to revenue generation.

Abu Dhabi National Insurance Company, a smaller player in the market, offers an intriguing profile with its debt-free status and high-quality earnings. Over the past five years, earnings have grown at 3% annually. Despite not outperforming the broader insurance industry last year, it still posted a respectable 13.5% growth in earnings. The company's Price-To-Earnings ratio of 8.7x is notably lower than the AE market average of 11.8x, suggesting potential value for investors. Recent results show net income reaching AED 354 million for nine months ending September 2025 compared to AED 308 million previously, indicating solid performance amidst industry challenges.

• Take a closer look at Abu Dhabi National Insurance Company PJSC's potential here in our health report.

• Understand Abu Dhabi National Insurance Company PJSC's track record by examining our Past report.

Najran Cement (SASE:3002)

Simply Wall St Value Rating: ★★★★★★

Overview: Najran Cement Company is involved in the manufacture and sale of cement products within the Kingdom of Saudi Arabia, with a market capitalization of SAR1.11 billion.

Operations: Najran Cement's primary revenue stream is from manufacturing cement, generating SAR531.16 million. The company's gross profit margin stands at 25.5%.

Najran Cement, a small player in the Middle East cement industry, has shown mixed performance recently. Its debt to equity ratio improved from 17% to 14.5% over five years, indicating better financial health. Despite high-quality earnings and EBIT covering interest payments four times over, recent results are less rosy. For Q3 2025, sales were SAR 122.67 million compared to SAR 134.57 million last year, with net income at SAR 3.07 million down from SAR 14.77 million previously. Earnings per share also dropped from SAR 0.09 to SAR 0.02, highlighting challenges amid industry pressures and executive changes in leadership roles.

• Click here and access our complete health analysis report to understand the dynamics of Najran Cement.

• Examine Najran Cement's past performance report to understand how it has performed in the past.

SofWave Medical (TASE:SOFW)

Simply Wall St Value Rating: ★★★★★★

Overview: SofWave Medical Ltd. develops, produces, markets, supports, and distributes ultrasound technology for non-invasive skin rejuvenation and firming treatments in Israel and internationally with a market cap of ₪963.52 million.

Operations: SofWave Medical generates revenue primarily from its Surgical & Medical Equipment segment, which reported $77.05 million in sales. The company has a market capitalization of ₪963.52 million.

SofWave Medical, a promising player in the medical equipment sector, recently reported impressive financial results. Sales for Q3 2025 reached US$21.07 million, a notable increase from US$13.51 million the previous year, while net income turned positive at US$0.982 million compared to a loss of US$1.33 million last year. The company is trading at 47% below its estimated fair value and has achieved profitability this year with high-quality earnings despite no debt over the past five years. SofWave's growth trajectory seems robust as it continues to outperform industry standards without concerns about cash runway or interest coverage due to its debt-free status.

• Click here to discover the nuances of SofWave Medical with our detailed analytical health report.

• Review our historical performance report to gain insights into SofWave Medical's's past performance.

Taking Advantage

• Dive into all 186 of the Middle Eastern Undiscovered Gems With Strong Fundamentals we have identified here.
• 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.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Ready For A Different Approach?

• 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.

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