The United Arab Emirates economy should expand by up to 3 percent this year, Economy Minister Sultan bin Saeed Al-Mansouri said on Monday.

The global financial crisis slashed growth rates across the world's largest oil exporting region last year, sending some oil producers such as the UAE and Kuwait into a downturn last year.

"I am very optimistic the economy will roll this year. The figures will be roughly between 2.5 and 3 percent ... but it will all depend on many factors," he told reporters on the sidelines of an event.

In December, Al-Mansouri expected the UAE to grow by 3.2 percent in 2010.

Analysts have cut their 2010 growth forecasts for the second largest Arab economy in the past months due to the impact of debt restructuring at Dubai's flagship companies.   

A Reuters poll showed analysts predicting the UAE's gross domestic product to grow by 2.5 percent this year -- the slowest pace in the Gulf.  But the world's third largest oil exporter would still improve from an estimated contraction of 1.4 percent in 2009.

Al-Mansouri, who had been sticking to his forecast for a 1.3 percent GDP growth in 2009 over the past months, said on Monday there was no contraction last year but did not comment further.

Dubai rocked global markets on Nov 25 with plans to delay repayment on $26 billion in debt linked to state-owned conglomerate Dubai World and its main property units.

The IMF forecast last month that Dubai woes would continue to be a drag on the UAE economy this year, estimating 0-1 percent economic growth in 2010 versus 0.7 contraction in 2009. - Reuters