The United Arab Emirates is gaining popularity as a manufacturing base for pharmaceuticals, according to the country’s health ministry.

Speaking to journalists at the recent Pharma in the GCC conference in Dubai, Amin Al Amiri, assistant undersecretary of Public Health Policy and Licensing at the UAE Ministry of Health, said the number of pharmaceutical manufacturing plants in the emirates is likely to more than double in the next five years to 34, from 16 at present.

The increase, Al Amiri said, reflects the UAE governments’ economic diversification efforts that are now beginning to bear fruit. The official said he expects three deals this year between international drug companies and domestic drug manufacturers.

In 2014, Dubai-based Globalpharma agreed to produce some of Sanofi’s generic medicines in the UAE. In the same year, Abu Dhabi’s Neopharma sealed a deal with Pfizer’s Wyeth arm to make medicines for pain management, cardiovascular diseases and women’s health. Julphar, the largest generic pharmaceutical manufacturer in the Middle East and North Africa region, has 13 production sites in the emirates.

Despite the crunch created by low oil prices and reduced government spending in the region, the UAE’s health budget is expected to remain steady for the next several years. Up to 2019, total healthcare expenditure is pegged to grow by nearly 8%, while spending on pharmaceutical products is set to rise by just over 8%.

Healthcare expenditure will increase despite oil prices coming down, Al Amiri asserted. In particular, he said, the health ministry will focus on tackling non-communicable diseases and changing lifestyles to reduce the incidence of diabetes and obesity.

The UAE’s healthcare and pharmaceutical markets continue to be the strongest in the region, according to US market research group Researchmoz Global. The group forecasts high single-digit combined annual growth rates over a 10-year forecast period, driven by high income levels and a large expatriate population.