With much uncertainty after the latest pandemic, investors may find it difficult to invest anywhere. Many want weatherproof security in their capital. With prudent conduct, stock trading can be a lucrative business. Many traders make a huge profit out of stock trading. However, It requires immense analytical skills, knowledge, loads of research, and patience.
Becoming a stock enthusiast is not an easy task. Indeed, you need to do your own research besides keeping updates on the expert opinions. We will recommend you think about investing in the Middle East stock markets.
If you want to enter this market, this post might help you. Today we will discuss the top 3 Middle-east stocks you must consider purchasing in 2022. Let’s get started.
The Basics To Invest in Stocks in the Middle East?
Even in today’s falling era of the stock market, the middle east stock exchanges are dominating tremendously. International investors around the world are searching for altered horizons. The Middle East is a massive marketplace for every investor with deep pockets. Before talking about investing in stocks in the Middle East, we should talk about the basics.
When you purchase the stock of a company, the stock price changes in terms of profit and loss of that company. If we think about investing in the Middle East stock market, predicting is not easy.
The Middle East is boasting mega oil reserves. Here, Saudi Arabia and the UAE rank at the top positions in GDP. The telecommunications and finance sectors of these countries are also emerging. With correct trading in this stock market, a very handsome profit can be obtained from Saudi and UAE stock exchanges. However, you must purchase those stocks which are about to spike in price. Also, you have to sell them before their value would decline.
Our Suggested 3 Stocks to Look at in 2022
Saudi Arabian Oil Co.
Saudi Aramco is officially Saudi Arabian Oil Co. This public company is concerned about natural gas and petroleum production in the Kingdom of Saudi Arabia and beyond. It is a leading energy and integrated chemicals business that produces almost one out of eight barrels of crude oil in the world. Saudi Aramco has a massive supply chain effect on the global economy.
This year has seen surges in food prices, leaving consumers with no need to invest unnecessarily in technology products. It is a reason for Saudi Aramco to become the most valuable company in the world. For investing in stocks, Saudi Arabian Oil Co. is our recommended stock for purchase in 2022.
History
Every energy brings an obvious opportunity to grow. Crude oil is one the most valuable things ever utilized. Saudi Aramco was founded by the famous Chevron in 1933. This oil company is ambitious to create a significant impact through its core belief. Aramco has been achieving continuous economic prosperity ever since.
Company Reviews
According to Refinitiv statistical data, Aramco’s worth is about $2.43 trillion. The Ukraine-Russia conflict causes energy price fluctuations. Aramco has a wonderful policy of getting production at a low cost. Saudi Arabian Oil Company is getting bumper revenues by earnings. Their profits doubled last year. About 78% of Aramco employees recommend working there to get a positive outlook.
Financials
| Market Cap | $2.43 Trillion |
| P/E Ratio | 18.463 |
| EPS (TTM) | 2.67 (current year) |
| Dividend Yield | 0.3198% (Q1) |
| Revenue | $393.92 B |
Al Rajhi Banking & Investment Corp SJSC
There’s no need to introduce the Al Rajhi Bank to anybody who lives in a country in the Middle East. This financial giant was founded in 1957. In today’s global market capitalization terms, the bank ranks as one of the most powerful institutions in the world.
Indeed, this is the biggest bank in the middle east. Its market cap is 381.60 Billion. Headquarters is situated in Riyadh. Al Rajhi Bank has a massive network of almost 500 branches. More than 5000 ATMs are in 24/7 service. It has a broad workforce of 9500+ employees.
History
This is a joint-stock financial giant of Saudi Arabia. Al Rajhi trading and banking entities founded the company in 1988. The entity has accumulated over 60 years of business experience in trading and banking. In 2006, this company was renamed Al Rajhi Bank.
Company Review
Al Rajhi Banking and investment corporation come with a deep root in the basic principles of Islamic banking. The Sharia financial organization is playing a vital role in helping out the running financial needs. While maintaining the core values of Islamic Sharia, it is a pioneer in industry development and standards.
Financials:
| Market Cap | 381.60 Billion |
| P/E Ratio | 24.55 |
| EPS (TTM) | 3.89 |
| Dividend Yield | 1.50 (1.52%) |
| Revenue | SAR 27.22B |
Saudi TADAWUL Group Holding Co
Saudi TADAWUL is one of the leading holding groups across the globe. It fosters the diverse development of the Saudi stock market. They work as a bridge between regional economies and global investors.
Tadawul offers services and products at reasonable prices compared to regional or global peers.
History
As a Saudi Exchange’s parent company, Saudi TADAWUL Group Holding Co is a dedicated name in the stock exchange business. This company was established in March 2021. Tadawul is another name for the Saudi Stock Exchange. It was transformed into the structure of a Holding Group. Their group integration resulted in strengthening the capital market.
Company Reviews
Tadawul Group made a very large business through their services at an affordable price. In 2021, it was reported that they had a net profit of SAR 587.7 million. This sum is 17% more than the SAR 500.5 million net profit of the previous year. After tax and Zakat, Tadawul Group still stands in one of the best positions in the stock market.
Financials:
| Market Cap | $26.95 Billion |
| P/E Ratio | 18.454 |
| EPS (TTM) | 4.58 |
| Dividend Yield | 1.34% |
| Revenue | $1.1 B |
Conclusion
The price chart of the stock market is manipulated by elements like EPS, inflation, earning base, liquidity, market hypes, and the valuation multiple. The above market analysis is a pure reflection of our own analysis of today’s Middle-east economy. We have discussed 3 Middle-East stocks you must consider purchasing in 2022. For growing in the stock market, you should conduct your research.
