Middle Eastern Market Gems: Al Dhafra Insurance Company P.S.C Among 3 Promising Penny Stocks

editorial-team@simplywallst.com (Simply Wall St)

Mon, Mar 24, 2025, 4:05 AM 4 min read

The Middle Eastern stock markets have recently experienced a downturn, with investor caution driving most Gulf indices lower due to escalating geopolitical concerns and worries over U.S. tariffs. Despite these challenges, the search for promising investments continues, particularly in niche areas like penny stocks. Although the term ‘penny stock’ may seem outdated, these smaller or newer companies can still offer significant growth opportunities when supported by strong financial health.

Click here to see the full list of 101 stocks from our Middle Eastern Penny Stocks screener.

We’re going to check out a few of the best picks from our screener tool.

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

Overview: Al Dhafra Insurance Company P.S.C. operates in the insurance and reinsurance sectors across the United Arab Emirates, other GCC countries, and internationally, with a market cap of AED 486 million.

Operations: The company generates revenue through two main segments: Investments, contributing AED 45.89 million, and Underwriting, accounting for AED 70.39 million.

Market Cap: AED486M

Al Dhafra Insurance Company P.S.C., with a market cap of AED 486 million, operates without debt, which can be appealing for risk-averse investors. Despite recent earnings declines, the company maintains high-quality earnings and a stable weekly volatility of 4%. Its short-term assets significantly exceed both short-term and long-term liabilities, indicating solid financial health. The proposed cash dividend of AED 35 million highlights its commitment to returning value to shareholders. However, the declining net income from AED 41.3 million to AED 38.38 million and reduced profit margins suggest challenges in maintaining profitability amidst industry pressures.

• Click here to discover the nuances of Al Dhafra Insurance Company P.S.C with our detailed analytical financial health report.

• Gain insights into Al Dhafra Insurance Company P.S.C’s past trends and performance with our report on the company’s historical track record.