Dubai's economy is expected to grow 3-3.5 per cent in 2011, while inflation should remain below 4 per cent, a government official said on Wednesday.

Sami al-Qamzi, director general of Dubai's Department of Economic Development, also told reporters the emirate would never sever trade ties with neighbour Iran.

Last week, the UAE economy minister Sultan bin Saeed Al-Mansouri said the UAE's gross domestic product was expected to grow between 3 per cent and 3.5 per cent in 2011.

The GDP is expected to reach 1 trillion dirhams ($272.3 billion) in 2010, the minister added.-Reuters