Middle East’s Hidden Stock Gems in June 2025: Spotlight on High-Growth Companies#

Top Middle Eastern Stock Gems#

1. Sure Global Tech (SGT)

   • Sector: Technology (Saudi Arabia)
   • Metrics: Debt-to-equity ratio not available, revenue growth 11.95%, earnings growth 18.65%, Simply Wall St rating ★★★★★★.
   • Overview: SGT provides IT solutions and services, benefiting from Saudi Arabia’s Vision 2030 digital transformation push. Its consistent revenue and earnings growth reflect strong demand for tech infrastructure.
   • Performance: The Saudi Tadawul index, where SGT trades, rose 2.1% in Q2 2025, supported by a 4.2% GDP growth forecast. SGT’s low analyst coverage and high growth make it a hidden gem, though specific financials are limited.
   • Risks & Opportunities: Strong fundamentals and regional tech investments offer upside, but global tech competition and potential U.S. tariff impacts pose risks.

2. MOBI Industry (MOBI)

   • Sector: Consumer Goods (Saudi Arabia)
   • Metrics: 6.50% debt-to-equity, 5.60% revenue growth, 24.00% earnings growth, rating ★★★★★★.
   • Overview: MOBI manufactures household and personal care products, capitalizing on rising consumer spending in the Gulf. Its robust earnings growth outpaces revenue, indicating operational efficiency.
   • Performance: MOBI’s stock has benefited from a 17% year-to-date Tadawul consumer goods sector gain. Its low debt and high earnings growth signal resilience.
   • Risks & Opportunities: Stable consumer demand and regional diversification support growth, but rising input costs and trade uncertainties could pressure margins.

3. Nofoth Food Products (NOFOTH)

   • Sector: Food & Beverage (Saudi Arabia)
   • Metrics: Debt-free, 15.75% revenue growth, 27.63% earnings growth, rating ★★★★★★.
   • Overview: Nofoth produces packaged food products, leveraging Saudi Arabia’s growing food security focus. Its debt-free status and high growth rates make it a standout.
   • Performance: The Tadawul food sector gained 12% in 2025, with Nofoth’s Q1 2025 sales up 20% year-on-year. Its P/E ratio of ~15x is below the sector average of 22x.
   • Risks & Opportunities: Strong domestic demand and export potential drive upside, but commodity price volatility and regulatory risks are concerns.

4. Vakif Gayrimenkul Yatirim Ortakligi (VKGYO.IS)

   • Sector: Real Estate Investment Trust (Turkey)
   • Metrics: Debt-free, 50.97% revenue growth, 56.63% earnings growth, rating ★★★★★★, stock up 7.21% on June 30, 2025.
   • Overview: Vakif, a Turkish REIT, focuses on commercial and residential properties. Its debt-free status and explosive growth reflect Turkey’s real estate recovery.
   • Performance: The BIST 100 index rose 8% in Q2 2025, with VKGYO gaining 25% year-to-date. Its P/E ratio of 9.2x is below Turkey’s market average of 17.2x.
   • Risks & Opportunities: Turkey’s construction boom and low valuation offer upside, but currency volatility (lira down 5% vs. USD in 2025) and inflation risks persist.

5. Gür-Sel Turizm Tasimacilik ve Servis Ticaret

   • Sector: Transportation (Turkey)
   • Metrics: 6.88% debt-to-equity, 51.77% revenue growth, 67.59% earnings growth, rating ★★★★★☆.
   • Overview: Gür-Sel provides tourism and logistics services, capitalizing on Turkey’s tourism rebound (25 million visitors in H1 2025).
   • Performance: The BIST transportation index gained 15% in 2025, with Gür-Sel’s stock up 30% year-to-date due to strong travel demand.
   • Risks & Opportunities: Tourism growth and regional connectivity drive upside, but fuel costs and geopolitical risks could impact profitability.

6. MIA Teknoloji Anonim Sirketi

   • Sector: Technology (Turkey)
   • Metrics: 17.80% debt-to-equity, 49.41% revenue growth, 66.89% earnings growth, rating ★★★★★☆.
   • Overview: MIA develops software and IT solutions, benefiting from Turkey’s digitalization push. High growth reflects demand for cybersecurity and cloud services.
   • Performance: The BIST tech index rose 20% in 2025, with MIA’s stock up 35% year-to-date. Its P/E ratio of ~12x is attractive vs. the sector’s 18x.
   • Risks & Opportunities: Government tech investments offer growth, but high debt and competition from global players pose risks.

7. Waja

   • Sector: Industrial (Saudi Arabia)
   • Metrics: 23.81% debt-to-equity, 98.44% revenue growth, 14.54% earnings growth, rating ★★★★☆☆.
   • Overview: Waja provides industrial and construction services, tied to Saudi Arabia’s infrastructure boom under Vision 2030.
   • Performance: The Tadawul industrial index gained 18% in 2025, with Waja’s stock up 40% year-to-date due to mega-project contracts.
   • Risks & Opportunities: High revenue growth signals strong demand, but moderate earnings growth and debt levels suggest margin pressures.

8. Kirac Galvaniz Telekominikasyon Metal Makine Insaat Elektrik Sanayi ve Ticaret Anonim Sirketi

   • Sector: Industrial (Turkey)
   • Metrics: 12.49% debt-to-equity, -23.32% revenue decline, 41.51% earnings growth, rating ★★★★☆☆.
   • Overview: Kirac specializes in galvanized metal and telecom equipment, operating from Bursa, Turkey. Despite revenue declines, earnings growth indicates cost efficiencies.
   • Performance: The BIST industrial index rose 10% in 2025, but Kirac’s stock volatility reflects revenue challenges. Its P/E ratio of ~10x is competitive.
   • Risks & Opportunities: Cost management supports earnings, but revenue declines and Turkey’s economic volatility pose risks. Infrastructure demand could drive recovery.

9. Dogan Burda Dergi Yayincilik Ve Pazarlama

   • Sector: Media (Turkey)
   • Metrics: 64.82% debt-to-equity, 46.23% revenue growth, -12.39% earnings decline, rating ★★★★☆☆.
   • Overview: Dogan Burda publishes magazines and digital media, benefiting from Turkey’s growing digital advertising market.
   • Performance: The BIST media index gained 12% in 2025, with Dogan Burda’s stock up 15% year-to-date despite earnings challenges.
   • Risks & Opportunities: Revenue growth reflects digital transition, but high debt and negative earnings growth signal operational risks.

10. Izmir Firça Sanayi ve Ticaret Anonim Sirketi (IBSE)

    • Sector: Building Products (Turkey)
    • Metrics: 43.01% debt-to-equity, 40.80% revenue growth, -34.83% earnings decline, rating ★★★★☆☆.
    • Overview: Izmir Firça produces cleaning materials and brushes, with sales of TRY 86.52 million in Q1 2025, down from TRY 117.6 million, and a net loss of TRY 21.18 million vs. TRY 13.07 million last year.
    • Performance: The BIST industrials index rose 10%, but Izmir Firça’s stock fell 5% year-to-date due to profitability issues.
    • Risks & Opportunities: Revenue growth is strong, but earnings losses and high debt require cautious monitoring. Domestic demand for cleaning products offers potential.

11. Pera Yatirim Holding Anonim Sirketi (IBSE)

    • Sector: Real Estate Investment Trust (Turkey)
    • Metrics: 6.7% debt-to-equity, revenue TRY 23.86 million (up from TRY 5.21 million), -10.2% earnings growth, rating ★★★★☆☆.
    • Overview: Pera operates as a REIT with a market cap of TRY 16.92 billion, reporting a Q1 2025 net loss of TRY 57.6 million vs. a TRY 21.97 million profit last year. Its debt-to-equity ratio improved from 52.3% to 6.7% over five years.
    • Performance: The BIST REIT index gained 18% in 2025, but Pera’s stock is volatile, down 8% year-to-date. Its P/E ratio of ~15x is below the market average.
    • Risks & Opportunities: Low debt and revenue growth are positive, but negative earnings and share price volatility suggest caution. Turkey’s real estate recovery offers upside.

12. First Avenue Real Estate Development (SASE:9610)

    • Sector: Real Estate (Saudi Arabia)
    • Metrics: 41.1% debt-to-equity, 41.3% earnings growth, revenue from contracting (SAR 149.50 million), sales/development (SAR 74.79 million), real estate sales (SAR 24.98 million), and rentals (SAR 5.67 million), rating ★★★★☆☆.
    • Overview: With a market cap of SAR 1.86 billion, First Avenue is expanding with a SAR 60 million land acquisition in Jeddah and SAR 320 million in Shariah-compliant financing from Alinma Bank.
    • Performance: The Tadawul real estate index rose 15% in 2025, with First Avenue’s stock up 25% year-to-date, driven by Vision 2030 projects.
    • Risks & Opportunities: High earnings growth and strategic expansions signal potential, but a high debt-to-equity ratio and volatile share prices require monitoring.

Regional Market Context#

• Market Trends: Middle Eastern markets, particularly Saudi Arabia’s Tadawul (up 12% year-to-date) and Dubai’s DFM (up 8% to a 17-year high), are rebounding due to the Iran-Israel ceasefire and stable oil prices (~$80/barrel). Saudi Arabia’s 4.2% GDP growth forecast for 2025, per the IMF, supports sectors like real estate and technology.
• Geopolitical Stability: The ceasefire and contained regional tensions reduce market risks, boosting investor confidence. However, U.S. tariff threats (e.g., 10% flat-rate discussions) could impact exports.
• U.S. Rate Cuts: Expectations of Federal Reserve rate cuts (from 4.25–4.5% post-2024 cuts) enhance liquidity, benefiting growth stocks like SGT and MIA Teknoloji.

Risks and Opportunities#

• Risks: High debt levels (e.g., Dogan Burda, Izmir Firça) and negative earnings growth in some stocks (Pera, Izmir Firça) pose risks, especially amid Turkey’s lira volatility (down 5% vs. USD) and potential U.S. trade policy shifts. Revenue declines in Kirac Galvaniz and global competition in tech and consumer goods are concerns.
• Opportunities: Debt-free or low-debt stocks like Vakif, Nofoth, and SGT offer stability. High-growth sectors like real estate (First Avenue, Vakif) and technology (MIA, SGT) align with regional diversification and digitalization trends. Undervalued P/E ratios (e.g., Vakif at 9.2x, Eastern Province at 11.6x) present value opportunities.

Conclusion#

Middle Eastern markets in June 2025 offer compelling investment opportunities, with stocks like Sure Global Tech, MOBI Industry, Nofoth Food Products, and Vakif Gayrimenkul Yatirim Ortakligi showcasing strong fundamentals and growth potential. Saudi Arabia’s economic rebound and Turkey’s real estate and tech sectors drive upside, though investors should monitor debt levels, earnings volatility, and U.S. trade policy risks. First Avenue and Eastern Province Cement (debt-free, P/E 11.6x) stand out for their resilience, while Pera and Izmir Firça require caution due to profitability challenges. Leveraging regional growth trends and undervalued stocks can unlock significant value in this dynamic market.