Global financial giants are increasingly turning their attention to the Middle East and are establishing operations in cities such as Dubai, Abu Dhabi, and Riyadh. With attractive incentives such as low taxes, and robust regulatory frameworks, the region has become a magnet for investment banks, hedge funds, asset managers, family offices, and law firms. Major players like JPMorgan, Goldman Sachs, and Morgan Stanley have strengthened their presence across the UAE and Saudi Arabia.
Asset management firms are also joining the trend. BlackRock, the world’s largest asset manager, has maintained a strong foothold in Saudi Arabia since opening its Riyadh office in 2019. Meanwhile, Wellington Management and Fiera Capital made their regional debuts in Dubai and Abu Dhabi, respectively, underscoring the region’s growing appeal for global asset managers. These firms are drawn by opportunities in the Gulf’s booming financial sector and the region’s commitment to diversifying beyond oil revenues.
The United Arab Emirates (UAE) is set to remain the world’s top destination for wealthy individuals for the third consecutive year, with a projected net inflow of 6,700 millionaires by the end of 2024, according to the Henley Private Wealth Migration Report. This figure significantly surpasses the United States, which ranks second with an expected net inflow of 3,800 millionaires. The UAE’s appeal lies in its favorable tax policies, strategic geographic location, world-class infrastructure, and attractive long-term residency programs such as the “golden visa.”
Africa: a New Era of Economic Growth
Africa is also an attractive place for investments, as demonstrated by the resounding success of the Africa Investment Forum 2024, which concluded on December 6 in Rabat, Morocco. The event secured an impressive $29.2 billion in new investor commitments after three days of intensive boardroom discussions. This year’s Forum witnessed a record attendance of 2,300 investors and delegates from 83 countries, marking a 60% increase from the previous year. Across 41 investment boardrooms, participants engaged in discussions spanning sectors such as transport, power, energy, agribusiness, industry, mining, pharmaceuticals, private equity, tourism, urban infrastructure, and water management.
One standout success from the Forum was Nigeria’s Special Agro-Processing Zone project, which aimed to raise $975 million but secured $4.8 billion in investor interest. Similarly, projects from Morocco and the Democratic Republic of the Congo attracted investments surpassing initial targets. The Forum’s founding partners, including Africa50, Afreximbank, the Development Bank of Southern Africa, the Africa Finance Corporation, and the Islamic Development Bank, reaffirmed their dedication to strengthening collaboration and driving transformative investments across the continent.
As global financial powerhouses continue to deepen their roots in the Middle East and investors increasingly turn their focus to Africa’s vast potential, both regions are emerging as pivotal hubs in the evolving global economic landscape. With that in context, let’s take a look at the 12 best Middle East and Africa stocks to buy right now.
Frontpage/Shutterstock.com
Our Methodology
To compile our list of the 12 best Middle East and Africa stocks to buy right now, we used Finviz and Yahoo stock screeners to compile an initial list of the 30 largest companies in the Middle East and Africa. We then used Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Middle East and Africa Stocks To Buy Right Now
12. Yalla Group Limited (NYSE:YALA)
Number of Hedge Fund Investors: 4
Yalla Group Limited (NYSE:YALA) is a leading social networking and entertainment platform based in the United Arab Emirates. The company primarily focuses on markets in the Middle East and North Africa (MENA) region. Yalla Group Limited (NYSE:YALA) offers group chat and entertainment services and generates revenue primarily through in-app purchases and premium services.
Yalla Group Limited (NYSE:YALA) is focused on deepening its localization capabilities, which enables the company to roll out new game features and operate events that fulfill the social and entertainment needs of its users. The company has seen significant success with its casual games such as Yalla Ludo and 101 Okey Yalla, which have achieved quarterly revenue records in Q3. Yalla Group Limited (NYSE:YALA) plans to build on this success by expanding its game offerings to include mid-core and hard-core games, with several titles currently in development and expected to be rolled out in 2025. This expansion into new game genres is expected to drive further growth and increase the company’s market share in the MENA region.
Yalla Group Limited (NYSE:YALA) is also exploring opportunities for external cooperation and expansion into new areas. The company has begun engaging in discussions with top-tier overseas internet companies interested in exploring the MENA market. While the Middle East market remains the company’s primary focus, Yalla Group Limited (NYSE:YALA) is also considering global promotions for new products with suitable content. This expansion into new markets and partnerships is expected to drive further growth and increase the company’s global presence.
11. Swvl Holdings Corp. (NASDAQ:SWVL)
Number of Hedge Fund Investors: 6
Swvl Holdings Corp. (NASDAQ:SWVL) is a Dubai-based tech-driven mobility company that provides transformative mass transit and ride-sharing solutions. The company operates in multiple emerging markets and offers cost-effective transportation options through its proprietary platform.
Swvl Holdings Corp. (NASDAQ:SWVL) has relaunched its product in the United Arab Emirates, a key market that aligns perfectly with the company’s growth strategy. By reintroducing its comprehensive product suite, Swvl Holdings Corp. (NASDAQ:SWVL) aims to cater to the diverse needs of riders, captains, transit operators, and transport managers by providing a seamless and efficient transportation experience. This strategic move is expected to strengthen the company’s presence in the region and solidify its position as a leader in the mobility industry.
The UAE’s transit market presents significant growth opportunities for Swvl Holdings Corp. (NASDAQ:SWVL). The company’s solutions are designed to support the country’s vision for a more efficient, reliable, and environmentally friendly transportation system, aligning with the UAE’s strategic goals for sustainable development. By leveraging its expertise and technology, Swvl Holdings Corp. (NASDAQ:SWVL) aims to contribute to the growth of the UAE’s smart transit market, creating new opportunities for businesses, residents, and visitors alike.
10. D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS)
Number of Hedge Fund Investors: 7
D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS), known as Hepsiburada, is one of Turkey’s leading e-commerce platforms. The company’s platform offers a wide range of products, including electronics, groceries, and fashion items. D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) generates revenue through marketplace commissions, advertising, and logistics services. The company serves millions of customers and partners with various sellers.
D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) is actively focusing on its loyalty program, Hepsiburada Premium. This program has been a key driver of customer retention and frequency, with premium members’ monthly order frequency rising by 31% in Q3 after joining the program. The company aims to increase the number of premium members, with a long-term objective of having half of its active customers enrolled in the program. By offering exclusive benefits, such as free cargo, free returns, and cashback, D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) is incentivizing customers to join and remain part of the program, thereby increasing customer loyalty and driving business growth.
D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) is also leveraging its fintech capabilities to drive growth, particularly through its buy-now-pay-later (BNPL) solutions and consumer finance loans. Additionally, the company’s partnership with Kaspi, a leading payments and fintech company in Kazakhstan, is expected to bring new synergies and opportunities for growth, particularly in the areas of fintech and digital payments.
9. VEON Ltd. (NASDAQ:VEON)
Number of Hedge Fund Investors: 7
VEON Ltd. (NASDAQ:VEON) is a multinational telecommunication services provider headquartered in Dubai. The company operates in several emerging markets, including Ukraine, Pakistan, Kazakhstan, Uzbekistan, and Bangladesh. VEON Ltd. (NASDAQ:VEON) provides a range of telecommunications services, including mobile and fixed-line communications, digital financial services, and entertainment platforms.
VEON Ltd. (NASDAQ:VEON) is focused on expanding its digital services to drive growth and increase revenue. The company’s digital services, including mobile financial services, entertainment platforms, and healthcare services, have shown significant growth, with direct digital revenues reaching $334 million in the first nine months of 2024, making up 11% of total revenues. VEON Ltd. (NASDAQ:VEON) is also investing in multiple digital verticals, including AdTech, cloud services, and software development, to serve unmet market demand and expand its customer base. The company’s mobile financial services, such as JazzCash in Pakistan, Beepul in Uzbekistan, and Simply in Kazakhstan, have seen significant adoption, with a total customer base of almost 23 million and a 39% year-on-year increase in transactions.
VEON Ltd. (NASDAQ:VEON) is also focused on growing its multiplay customer base, which has shown significant growth, with a 31% year-on-year increase in revenue. The company’s multiplay customers, who use both 4G connectivity and digital products, drive higher revenue generation. VEON Ltd. (NASDAQ:VEON) is expanding its multiplay offerings, including its super apps, which offer a wide variety of services, including healthcare, education, entertainment, and e-commerce. As of Q3, the company’s super apps are serving almost 38 million customers, growing 12% year-on-year.
8. Harmony Gold Mining Company Limited (NYSE:HMY)
Number of Hedge Fund Investors: 11
Harmony Gold Mining Company Limited (NYSE:HMY) is a South African gold mining and exploration company. The company operates multiple mines in South Africa and Papua New Guinea and has established itself as a specialist gold producer with a growing international copper footprint.
Harmony Gold Mining Company Limited (NYSE:HMY) is focused on optimizing its existing operations, particularly its underground mines in South Africa. The company has allocated $117.18 million towards decline projects at these mines in FY25, which will enable it to maintain flexibility and reduce costs. Additionally, Harmony Gold Mining Company Limited (NYSE:HMY) is conducting studies to determine whether the life of the mine at its Hidden Valley can be extended further. The company is also progressing with a feasibility study update on its Wafi-Golpu copper project, which has the potential to become a significant contributor to the company’s future growth.
Harmony Gold Mining Company Limited (NYSE:HMY) is also exploring new opportunities to grow its business, including the development of its surface operations in South Africa. The company has identified significant potential in its old tailings dams, with 5.7 million ounces of resources in the Free State. A feasibility study is underway to determine the viability of re-mining these tailings, which could potentially create another mega tailings retreatment operation. Furthermore, Harmony Gold Mining Company Limited (NYSE:HMY) is constantly looking for opportunities to acquire high-quality assets that can enhance the company’s portfolio and drive growth.
7. Sasol Limited (NYSE:SSL)
Number of Hedge Fund Investors: 14
Sasol Limited (NYSE:SSL) is a South African integrated energy and chemical company with a presence in 30 countries. The company produces and markets chemicals, fuels, and related products. Sasol Limited (NYSE:SSL) earns revenue from its energy production and chemical manufacturing operations.
Sasol Limited (NYSE:SSL) is exploring opportunities for diversification and expansion. The company is investing in new areas, such as renewable energy and sustainable aviation fuels, which are expected to drive growth in the coming years. Sasol Limited (NYSE:SSL) is also seeking to expand its presence in new markets, particularly in Africa and Asia, where demand for energy and chemicals is increasing rapidly. Through its joint venture with Topsoe, for example, the company is developing a new sustainable aviation fuel that is expected to be in high demand in the coming years. These initiatives are designed to reduce the company’s dependence on its traditional markets and to position the company for long-term success.
Sasol Limited (NYSE:SSL) is also investing heavily in research and development, with a focus on developing new technologies and processes that can help to reduce costs, improve efficiency, and enhance its competitiveness. Sasol Limited (NYSE:SSL) is partnering with other companies and organizations to leverage their expertise and accelerate the development of new technologies. In its chemicals business, for example, the company is working with partners to develop new catalysts and processes that can help to improve the efficiency and sustainability of its operations.
6. Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Investors: 18
Sibanye Stillwater Limited (NYSE:SBSW) is a multinational mining company headquartered in South Africa. The company is a leading producer of precious metals, including platinum, palladium, and gold. Sibanye Stillwater Limited (NYSE:SBSW) is also strategically expanding into new areas such as zinc and uranium.
One of the key areas of focus for Sibanye Stillwater Limited (NYSE:SBSW) is its expansion into new commodities, particularly zinc and uranium. The company’s Century City zinc segment has shown promising results, with a significant increase in EBITDA and payable production. Sibanye Stillwater Limited (NYSE:SBSW) is also exploring opportunities to increase its exposure to the uranium market, which is expected to experience growth driven by the increasing demand for nuclear energy. The company has announced a partnership with C5 Capital to explore uranium at a global scale, which is expected to enhance its earnings capacity and diversify its revenue streams.
To drive growth and expansion, Sibanye Stillwater Limited (NYSE:SBSW) is focusing on optimizing its existing operations and improving its production efficiency. Additionally, Sibanye Stillwater Limited (NYSE:SBSW) is working to address the technical challenges that have impacted its production in the past, including the cyber-attack that disrupted its sales pipeline. By resolving these issues and improving its operational performance, the company is confident that it can increase its production and reduce its costs, ultimately leading to improved profitability and cash flow.
5. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Investors: 22
Gold Fields Limited (NYSE:GFI) is a globally recognized gold mining company with a robust and diverse portfolio of assets strategically positioned across key mining regions, including South Africa, South America (Chile and Peru), Ghana, Australia, and Canada.
Gold Fields Limited (NYSE:GFI) has been proactively addressing several operational hurdles stemming mainly from persistent issues at the South Deep mine in South Africa and the Gruyere mine in Australia, as well as delays in the production ramp-up at the highly anticipated Salares Norte project in Chile. The company demonstrated notable improvements in Q3, reporting gold production of 510,000 ounces. This figure marks a recovery from the 454,000 ounces produced in Q2, though it still represents a decline compared to the 542,000 ounces achieved in the same quarter of the previous year.
Gold Fields Limited (NYSE:GFI) is also exploring the possibility of divesting its smaller and less efficient mining assets in Ghana and Peru. This potential move is part of a broader strategy to concentrate resources and capital on larger, higher-yielding operations that offer stronger long-term growth prospects. Additionally, the company plans to leverage opportunities arising from its recent acquisition of Osisko Mining’s assets, which are anticipated to further strengthen its portfolio and enhance production capabilities in the coming years.
4. Wix.com Ltd. (NASDAQ:WIX)
Number of Hedge Fund Investors: 46
Wix.com is an Israeli cloud-based web development platform that allows users to create professional websites and online stores. The company generates revenue through subscription plans and premium services by providing services to a user base of over 222 million users.
One of the key areas of focus for Wix.com Ltd. (NASDAQ:WIX) is the development and integration of artificial intelligence (AI) into its platform. The company has made significant investments in AI-powered tools, including its AI Website Builder, which has been a game-changer in user onboarding. The AI Website Builder is now available in 20 languages and has been adopted by over 50% of new users. Wix.com Ltd. (NASDAQ:WIX) is also embedding AI assistants across its platform, with 29 assistants currently available to support users and serve as guides throughout their online journeys. These AI solutions are aimed at streamlining processes, building stronger relationships between users and their customers, and empowering users to make better-informed decisions
Wix.com Ltd. (NASDAQ:WIX) is also focused on expanding its Studio platform, which is designed for professional users such as agencies and designers. The company has seen excellent results from Studio, with 75% of bookings from new partners driven by Studio accounts. Wix.com Ltd. (NASDAQ:WIX) is continuing to launch new features and updates to support agencies and designers, including a new visual sitemap and wireframe generator. The company is confident that Studio will continue to drive growth and is investing in the platform to sustain momentum in 2025 and beyond.
3. Monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Investors: 49
Monday.com Ltd. (NASDAQ:MNDY) is an Israeli software company specializing in subscription-based work operating systems. The company’s platform enables teams to plan, organize, and track workflows efficiently. In Q3, the company achieved a significant milestone by surpassing $1 billion in annual recurring revenue (ARR).
To drive future growth, Monday.com Ltd. (NASDAQ:MNDY) is focused on expanding its product offerings and increasing adoption among larger enterprises. The company recently announced the upcoming launch of Monday Service, a new product that will enable customers to manage internal and external services more efficiently. With a strong reception from beta users, the company is confident that Monday Service will be a key driver of growth in the coming year. Additionally, Monday.com Ltd. (NASDAQ:MNDY) is investing heavily in its sales and marketing efforts, with a focus on hiring experienced sales professionals and expanding its partner ecosystem.
Another key area of focus for Monday.com Ltd. (NASDAQ:MNDY) is the development of artificial intelligence (AI) capabilities within its products. The company has seen significant adoption of its AI-powered features, with a 250% increase in AI actions and a 150% increase in AI blocks used by customers. As the company continues to invest in AI research and development, it is focusing on rolling out new features and capabilities that can be monetized and will enable customers to automate more complex workflows and drive greater efficiency.
2. CyberArk Software Ltd. (NASDAQ:CYBR)
Number of Hedge Fund Investors: 51
CyberArk Software Ltd. (NASDAQ:CYBR) is an Israeli cybersecurity company specializing in identity security solutions. The company helps organizations protect sensitive data and prevent cyber threats. CyberArk Software Ltd. (NASDAQ:CYBR) earns revenue through software licenses, subscriptions, and professional services. The company’s clients include Fortune 500 companies and government agencies.
CyberArk Software Ltd. (NASDAQ:CYBR) is committed to continuing its growth trajectory by expanding its platform capabilities and market reach. The company is investing heavily in research and development to stay ahead of emerging threats and to enhance its existing solutions. One key area of focus is the integration of machine learning and artificial intelligence to improve threat detection and response times. By leveraging these advanced technologies, CyberArk Software Ltd. (NASDAQ:CYBR) aims to provide customers with even more robust security measures that can adapt to evolving attack vectors.
CyberArk Software Ltd.’s (NASDAQ:CYBR) recent acquisition of Venafi, a leader in machine identity management, underscores its commitment to expanding its portfolio and addressing the growing need for machine identity security. This acquisition not only broadens the company’s offerings but also positions the company as a one-stop shop for both human and machine identity security.
1. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Investors: 61
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a multinational pharmaceutical company headquartered in Israel. The company has a significant presence in both generic and specialty medicines, including treatments for central nervous system disorders and respiratory diseases.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is actively investing in its innovative pipeline, with a focus on developing and commercializing novel treatments for various therapeutic areas. The company has made significant progress in its anti-TL1A program, which is being developed in partnership with Sanofi, and is expected to bring a new treatment option for patients with ulcerative colitis and Crohn’s disease. Additionally, Teva Pharmaceutical Industries Limited (NYSE:TEVA) is advancing its Olanzapine LAI program, which has shown promising results in Phase 1 and is being developed as a long-acting injectable treatment for schizophrenia.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is also expanding its biosimilar portfolio, with a focus on cost-effective alternatives to expensive biologic drugs. The company has a robust pipeline of biosimilar candidates targeting various therapeutic areas, including autoimmune diseases and oncology. By investing in biosimilars, the company aims to capitalize on the increasing demand for affordable treatments and reduce its reliance on generic competition.
While we acknowledge the potential of Teva Pharmaceutical Industries Limited (NYSE:TEVA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TEVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
