Top penny stocks to watch in the UAE in 2025

What are penny stocks?

Penny stocks refer to companies with a stock price lower than US$5 per share. They can be a steal in the market – if you know which ones to watch out for. But that also means they’re inherently risky: volatile, often with lower liquidity. Because they’re thought of as high-risk, the returns or losses can be substantial. 

Why stock trade penny stocks in the UAE?

Stock trading penny stocks in the UAE can be a profitable investment, especially if you do your research well and pick shares of companies that have a favourable outlook. However, as we mentioned, no matter how much research you conduct, there will always be an element of risk involved in stock trading.

Here are a few reasons why stock trading penny stocks in the UAE is worth considering:

• Have confidence in a regulatory framework through ADGM and DIFC
• Enjoy a growing market with Vision 2071 diversification plans
• Access regional growth through UAE-listed companies

Advantages of penny stocks

The advantages of stock trading penny stocks are:

• Diversification: Because they’re high-risk, stock traders can allocate a small portion of their investment portfolio to penny stocks with the hopes of receiving high returns
• High potential for profit: Because they’re often undervalued, penny stocks have the ability to return extraordinary gains. However, they can just as easily lead to great losses
• Small capital: Due to the low share price, you don’t need a massive outlay to start trading penny stocks
• Potential for growth: Penny stocks can grow into mid-sized stocks, effectively increasing their value

Risks of penny stocks

Just as there are pros to trading penny stocks, so are there disadvantages, too. Let’s look at them:

• Illiquid: Penny stocks are easily bought, but not so easily sold. This makes them risky if you want to sell before you lose money
• Potential for bankruptcy: Companies that own penny stocks are more likely to declare bankruptcy. If you trade stocks close to the time of a company going under, you’re more likely to lose your investment
• Prone to pump and dump schemes: Pump and dump schemes happen when a low-value stock is hyped up artificially, luring traders to buy shares. The shares are then sold when they’re overpriced and the traders being scammed lose their investments

Top 5 penny stocks to watch in the UAE

Our selection methodology

We analysed UAE-listed penny stocks using these criteria:

• Financial stability: Positive cash flow and recent profitability improvements
• Growth momentum: 6-month performance outpacing broader market
• Sector outlook: Operating in industries aligned with UAE's economic diversification goals
• Trading volume: Sufficient liquidity for retail investors to enter and exit positions

The penny stocks we've selected were chosen for their positive current and future outlooks based on this analysis. All figures are accurate as of June 2025.

1. SHUAA Capital (DFM: SHUAA)

Industry: Finance

Market cap: AED 848 million³

Stock price (as of June 2025): AED 0.23³

Current focus: Public and private markets, debt and real estate investments.

SHUAA Capital, an asset management and investment company, is currently on the up-and-up, with an 8.52% increase in performance over the past six months, as of June 2025.⁴

It was founded in 1979 and was formerly known as Arabian General Investment Corporation. In 2019, it merged with Abu Dhabi Financial Group to create an entity that focuses on asset management and investment banking.

It operates primarily in the UAE and is headquartered in Dubai.

Highlights:

• Market cap performance percentage over the last year is 143.02%⁴
• Finalised the sale of its Saudi hospitality portfolio in June 2025
• Reported a strong Q1 2025 with an AED 196 million net profit⁵

2. Al Firdous Holdings (DFM: ALFIRDOUS)

Industry: Hospitality

Market cap: AED 168 million⁶

Stock price (as of June 2025): AED 0.28⁴

Current focus: Operates hotels and restaurants, and organises religious tours like Hajj and Umrah trips.

Al Firdous Holdings is a multi-million dirham company operating out of Dubai, with a strong presence in Saudi Arabia, too.

In addition to managing restaurants, hotels and religious tours, it also runs historical Islamic tours and organises exhibitions and conferences.

It was registered in July 1998 and started operations in October of the same year.

Highlights:

• Al Firdous has an agreement with Gulf Oasis Realty to manage and operate the Oasis Court Hotel Apartments in Dubai
• Current assets total AED 622.75 million⁴
• It makes halal investments, avoiding interest, excessive uncertainty and gambling

3. Sharjah Cement and Industrial Development Co (ADX: SCIDC)

Industry: Manufacturing

Market cap: AED 448 million⁷

Stock price (as of June 2025): AED 0.73⁴

Current focus: Manufacturing and supplying cement, paper sacks and plastic ropes.

Based in Sharjah, UAE, the company manages securities, private equities and property investments in addition to its cement manufacturing operations.

Its products are sold in the UAE, other Middle Eastern countries, Africa and Asia.

Interestingly, SCIDC takes a solid approach to sustainability; it has a zero-waste to landfill policy and uses treated wastewater at its plant.

All its products are manufactured to US and European standards, indicating its willingness to provide a well-made, sought-after product, which stands it in good stead for future growth.

Highlights:

• Market cap performance percentage has increased by 14.83% over the last year⁴
• AI in general is being used in cement manufacturing more and more, such as monitoring raw material sizing and kiln operations to detect wear and overheating. This makes for an industry on the cutting edge of modernisation
• Recently declared a dividend of AED 0.05⁴

4. e7 Group (ADX: e7)

Industry: Numerous, including printing and packaging

Market cap: AED 2.27 billion⁸

Stock price (as of June 2025): AED 1.03⁸

Current focus: Printing, packaging and distribution solutions.

e7 offers its services to local and global customers, including the following:

• Secure identity systems
• Printing
• Branding
• Packaging
• Logistics

Its secure printing category protects personal data for the banking, government, telecom, retail, hospitality and transport sectors.

In the publishing realm, it works on newspapers, magazines, books, out-of-home projects and educational materials.

Additionally, it’s the fastest-growing company in educational publishing in the region, and boasts partnerships with government institutions in the UAE and private education providers. This is a good sign that the company is headed in the right direction.

Highlights:

• In March 2025, the board of directors proposed a maiden dividend totalling AED 147.1 million⁹
• e7 is investing AED 182 million into its security solutions, which include growing passport manufacturing capabilities
• Potential acquisitions are on the horizon, indicating future growth

5. Phoenix Group (ADX: PHX)

Industry: Technology

Market cap: AED 804 billion¹⁰

Stock price (as of June 2025): AED 1.37⁸

Current focus: Developing and operating digital asset infrastructure, especially in blockchain and crypto.

A multi-billion dirham company, Phoenix Group specialises in a number of technology-related activities, including Bitcoin mining, data centre operations and computing machines trading.

It also dabbles in strategic investments in the blockchain and crypto arenas in an effort to deliver innovation in Web3.

Despite its industry, it’s focused on sustainability, using clean hydropower for some of its operations, including the Grand Ethiopian Renaissance Dam in Ethiopia.

Notably, Phoenix Group was the first blockchain and crypto corporation in the region to list on the ADX.

Highlights:

• Operations across five countries, including the UAE, Canada, Oman and the US
• The company announced in February 2025 that its Bitcoin mining revenue had grown by 236% YoY for FY24¹¹
• The company has prevailed despite headwinds like the prolonged bearish Bitcoin market

How to trade penny stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for penny stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for penny stocks available for direct ownership
3. Choose the stock you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about penny stocks

Footnotes

1. UAE Government: 'We the UAE 2031' vision aims to double GDP from AED 1.49 trillion to AED 3 trillion
2. Trading Economics: ADX General Index performance, up 5.55% year-on-year, June 2025
3. Reuters, June 2025
4. Trading View, June 2025
5. SHUAA Capital, May 2025
6. Dubai Financial Market, June 2025
7. Abu Dhabi Securities Exchange, June 2025
8. e7 Group, June 2025
9. e7 Group, March 2025
10. Phoenix Group, June 2025
11. Phoenix Group, February 2025
12. StockAnalysis.com, April 2025
13. Simply Wall St, April 2025
14. StockAnalysis.com - DFM:ALFIRDOUS Statistics, 2025