Officials say firefighters have managed to bring the majority of the fire under control, according to the BBC.
There are 16 reports of injuries: 14 minor, one moderate and one case of a heart attack due to overcrowding and smoke.
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A massive fire broke out in the high-rise Address Hotel in downtown Dubai near where many had gathered for the city's New Year's Eve fireworks display Thursday evening, prompting a mass evacuation .
Video of the fire shows a trail of fire on the side of the hotel, creeping close to the top.
In a statement, the United Arab Emirates government said that as many as four crews of firefighters are at the scene to contain the blaze, reported CNN. The blaze is believed to have started on the 20th floor but has yet to make its way to the interior of the building, it added.
Despite it not making its way inside the building, the fire has already caused extensive damage to the outer frame, causing debris from the building to rain down below. An official said the building was evacuated and no one was injured on the inside, but it's not clear if the same can be said for those who were outside when the fire began, according to CNBC.
News crews were able to catch up with onlookers who described the moment the flames began to erupt.
"All of a sudden we saw this huge black plume of black smoke coming between the Khalifa Tower and the hotel," tourist Michelle Duque told the BBC. "The flames burst out really big and before we knew it the whole of the Address Hotel was covered in orange flames."
"The problem is millions of people inside the Burj Khalifa [a nearby building] cannot move anywhere because we [are] kind of waiting for the fireworks display," another tourist said.
It's not clear what started the fire, but the fire did come a little before Dubai's New Year's Eve celebration at a time when other countries have made it a priority to enhance security amid fears that terrorists could be plotting attacks against revellers. Some countries have reported catching militants planning such attacks, while at least one has cancelled its New Year's Eve celebration altogether.
Another possibility is that one of the fireworks misfired and hit the side of the building, and nothing has been ruled out.
Once extinguished, New Year's Eve celebrations will continue as usual, government officials said.
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