The UAE, the second-largest Arab economy, expects inflation to ease to 10 per cent this year from at least 11.1pc last year, it was reported.

The Al Ittihad newspaper quoted UAE Economy Minister Sultan bin Saeed Al Mansouri as saying that inflation, which had been driven up by soaring commodities prices and weakness in the dollar, was expected to ease next year as oil prices fall.

Inflation was expected to fall to 9pc while economic growth, though dampened by falling oil revenues and the global economic crisis, would "remain high", the newspaper quoted Al Mansouri as saying.