Promising Arab Stocks | Investment Guide in the Best Companies for 2025

Investment Opportunities in Middle Eastern Financial Markets

The markets in the region have seen significant development in recent years, with several strong financial institutions and stable companies offering diverse investment options for investors. Whether in the Saudi, UAE, or Egyptian stock markets, good opportunities for financial growth and periodic returns can be found.

The region offers a high level of investment diversity that is hard to find in other global markets. The strong infrastructure and government support for companies, along with stocks that are undervalued relative to their current prices, make the region an attractive destination for global investors.

Investment Strategies: Long-term vs. Short-term

Short-term investing and active trading

Investors seeking quick gains often resort to short-term strategies. Profits can be made by predicting price movements of stocks through various methods, allowing investors to benefit from the price difference between entry and exit points.

One popular method involves using risk management tools such as stop-loss and trailing stop-loss, which allow traders to control their exposure to risks. Leverage enables opening larger positions, but it also amplifies both profits and losses, so beginners are advised to use low leverage.

Long-term investing and wealth building

This type of investing has always been associated with creating real wealth. Buying strong companies’ stocks and holding them for many years has proven effective throughout history.

Buy and Hold Strategy requires careful initial selection of companies. Investors choose stocks with strong fundamentals and hold them regardless of short-term fluctuations.

Dollar Cost Averaging offers a different approach where investors regularly buy the same stock or at certain price levels, reducing the average purchase price and mitigating the impact of volatility.

Dividend Stocks: Stable Periodic Income

Many investors look for stocks that provide additional periodic income through dividends, offering immediate returns along with the potential for stock appreciation.

Dividends in the Saudi Stock Market

The Saudi stock market is the largest in the region and has attracted significant international investments. The following companies offer attractive dividend yields:

Dividends in the Abu Dhabi Market

The banking, real estate, and oil sectors dominate Abu Dhabi. Banks and real estate companies offer some of the best distributions:

Income opportunities in the Egyptian Stock Market

The Egyptian stock market is characterized by volatility that creates investment opportunities. Egyptian companies operating locally and exporting internationally are expected to generate income in foreign currency with relatively low operating costs:

Recommended Stocks for Investment in 2025

1- First Abu Dhabi Bank (FAB)

One of the largest financial institutions in the UAE, offering investment banking, retail banking, private banking, Islamic banking, and asset management services.

Financial results for the first half of 2025 showed clear strength: net profit increased by 26% to AED 10.63 billion, pre-tax profit rose by 29%. Operating income reached AED 18.31 billion, assets grew by 14%, loans increased by 11%, and customer deposits by 6%.

Dividends yield up to 4.56% with a growth of 5.63%, distributed annually. Its strong financial position makes it a good opportunity for those seeking stable periodic income.

Potential risks include changes in interest rates that could affect bank profits. Technically, indicators suggest buying opportunities; the price trades above the 200-day moving average and below the 50-day moving average, indicating potential positive momentum.

2- Al Rajhi Bank

One of the most established banks in Saudi Arabia, specializing in Islamic banking and electronic accounts. The semi-annual results for this year were exceptional: net income after Zakat increased by 32.5% to SAR 12.1 billion, operating revenues grew by 26.5%, and return on equity reached 23.5%.

Current dividend yield is about 1.98%. Future prospects focus on growth in mortgage financing, which jumped 15%, and corporate financing, which increased by 37.9%.

Risks include rising risk costs to 0.31% and a 28.4% increase in impairment charges, requiring close monitoring of credit quality. Technical analysis indicates strong buying opportunities with consensus among indicators on an upward trend. The price trades above all moving averages.

3- Commercial International Bank (CIB)

The largest private bank in Egypt, offering a variety of services for individuals and businesses. Results for Q1 2025 showed a net income of EGP 16.6 billion, up 39% annually, with revenues reaching EGP 27 billion.

Strong growth in profits and revenues, along with diversified income sources, make it attractive for investment.

Risks include exchange rate fluctuations of the Egyptian pound and inflationary pressures. Technically, the outlook is neutral due to conflicting indicators; the price trades above some averages and below others.

4- Aramco

The world’s largest oil company, operating in exploration, production, refining, export, and renewable energy. The first half of 2025 recorded net income of SAR 190 billion, free cash flow of SAR 128 billion, and quarterly dividends of SAR 79.29 billion.

Its strong financial position attracts global investors. Future projects include developing Dammam and international projects in Chile and Pakistan.

Main risks: oil price volatility, high costs, and dependence on global demand. Technical analysis leans toward buying with strong signals from most indicators.

5- ADCB (Abu Dhabi Commercial Bank) (ADCB)

An important financial institution in the UAE providing services for individuals and companies. In the first half of 2025, net profit reached AED 5.014 billion, with a pre-tax growth of 18%, and the non-performing loan ratio improved to 2.02%.

Operational efficiency reached the lowest ratio in the bank’s history at 26.4%, with non-interest income diversifying to 36%.

Risks include rising tax rates from 9% to 15%. Dividends at 4% with an annual growth of 5.36%.

6- Saudi Telecom Company (STC)

The largest telecom company in the Kingdom. In H1 2025, profit grew by 13.4% with a 35% pre-tax margin, and revenues increased by 2%. Dividend yields reached 9.2% quarterly.

Positive developments include infrastructure upgrades, 5G deployment, and the launch of STC Bank, which attracted 3 million users.

Risks involve competition, pricing, and ongoing technological investments. Technical analysis currently leans toward a sell signal.

7- Emaar Properties (EMAAR)

A leading real estate developer in the UAE, specializing in residential, commercial, and hotel projects. H1 2025 showed exceptional performance: real estate sales increased by 46% to AED 46 billion, revenues reached AED 19 billion with a 38% growth, and net income grew by 34% to AED 10.4 billion.

Dividend yield is 7.35%, with 100% growth. The stock benefits from the strong upcoming real estate sales.

Risks are related to a slowdown in Dubai’s real estate market. Technical analysis indicates buying opportunities with strong signals from indicators.

8- Saudi Telecom Company ###علم###

A leader in the tech sector providing digital transformation, consulting, and IT services. H1 2025 achieved a net profit of SAR 1.08 billion with a 30.6% growth, revenues grew by 21.02% to SAR 4.12 billion, and earnings per share reached SAR 13.95.

Significant revenue growth and diversified sources make it a good opportunity.

Risks include high operating expenses and reliance on government contracts. Technical analysis shows strong buy signals with consensus among most indicators.

( 9- Almarai )Almarai

The largest food company in Saudi Arabia, specializing in dairy, juices, poultry, and baked goods. H1 2025 recorded a net profit of SAR 1.37 billion, up 5%, with revenues reaching SAR 11.05 billion, up 4.2%, and earnings per share of SAR 1.38.

Strong demand for products and continuous diversification make the stock attractive.

Risks include high operating costs and currency fluctuations. Technical analysis indicates a balance between buy and sell signals currently.

10- Egyptian Telecommunications ETEL

The main provider of telecom services in Egypt with the largest market share. H1 2025 saw a profit increase of 61% to EGP 10.5 billion, with operating revenues reaching EGP 50 billion.

Market dominance and primary ownership of infrastructure provide stability.

Risks include rising financing costs, which reached EGP 6.6 billion. Technical analysis recommends a strong buy with nearly full consensus among indicators.