Firefighters on Friday appeared to have mostly extinguished a blaze that suddenly engulfed one of Dubai's most prominent skyscrapers on New Year's Eve, witnesses said.

Plumes of white smoke still emanated from the charred, 63-storey Address Downtown Dubai hotel and residential block at daybreak, but civil defence crews had mostly extinguished the flames which erupted around 9.30 pm local time.

Witnesses reported seeing flames leaping from a lower portion of the building as late as around noon local time, but a hotel spokesperson said the situation was under control.

"The fire in the hotel has been contained. We would like to express our gratitude to the authorities for their immediate and professional support. An investigation is ongoing," the spokesperson wrote in an email.

Dubai police said on Thursday that the building was evacuated and 14 people were slightly injured. A medic at the scene said more than 60 people were treated for mild smoke inhalation and problems caused by crowding as they fled.

Witnesses described seeing flaming debris wafting down from The Address as occupants left, some running.

The New Year's fireworks display at the nearby Burj Khalifa, the world's tallest building, is one of Dubai's most celebrated annual rites and attracted thousands of spectators - most of whom were evacuated before the spectacle went on as scheduled.

Live TV broadcasts of the extravaganza appeared to show only a few dozen people in the vast viewing venue near the tower.

Dubai, among the most open and peaceful cities in the war-battered Middle East, prides itself as a tourist and business hub.

But the metropolis, one of seven emirates that make up the United Arab Emirates (UAE), may face questions about the safety of its rapidly-constructed cityscape, especially after another high-rise building caught fire earlier this year.

Security officials said the conflagration began on the outside of the structure at the 20th floor, and the deputy chief of police said the investigation into its cause was underway.

Dhahi Khalfan posted a picture of a fireball toward the hotel's base on his official Twitter account on Friday.

"A forensic photographer from the Dubai police with the lens of his camera, from here the investigation begins," he said.  

Residents open homes  

Heavy black smoke still billowed from several floors of the hotel early on Friday, an AFP photographer said, as firefighters continued to douse the building with water hoses.

Roads leading directly to the hotel were closed but otherwise Dubai city centre appeared normal, with passers-by stopping to take pictures of the building with their mobile phones.

The hashtag #NeedanAddress trended on Twitter overnight as Dubai residents offered to open their homes to evacuated hotel guests.

"We have sofas, sleeping bags and an endless supply of love. Plus Nutella. #needanaddress #mydubai You're not alone. You're home," resident Faizan Jamal tweeted.

"This #NeedanAddress thing is awesome. Good going, Dubai," Omar Adam wrote.

Many on Twitter praised the response of fire and emergency services, pointing to the fact that there were no major injuries, though some questioned whether New Year's festivities should have gone ahead.

"Bizarre response of authorities in Dubai. Surely fireworks could have waited till tomorrow?" Sumbal Naqi wrote.

The Dubai government said evacuated guests were being offered alternative accommodation and provided a telephone number to call for assistance.

It published several videos on its Twitter feed of fireworks erupting around the iconic Burj Khalifa and said the New Year's celebration was a testimony to Dubai's "steadfast commitment to its major projects and initiatives".

Trapped on ledge  

A newspaper photographer who was on a 48th floor to take pictures of the fireworks when the fire erupted told AFP he had spent a harrowing 30 minutes standing on a ledge outside the building, only metres from the raging blaze.

The photographer, who asked not to be named, said he was trapped on a balcony by fire and smoke.

Unable to escape and afraid he would die of suffocation, he rolled out some 30 metres of heavy-duty cable from a nearby machine used by workers to clean the tower's windows, attached it to his belt and stepped off the balcony onto a narrow ledge.

"One hour, then that's it, I'm dead," he thought as he stood on the ledge. He was eventually saved by rescue workers after calling and texting colleagues asking for help.

The Address Downtown hotel, opened in May 2008 and owned by Dubai property giant Emaar's hospitality group, is the 18th tallest building in the city and the 93rd highest in the world.

A growing tourist destination, Dubai has become famed in recent years for its distinctive skyline and ambitious building projects, but has suffered from a number of spectacular fires.

In November, a massive blaze engulfed three residential blocs in central Dubai and led to services on a metro line being suspended, although no one was hurt.

In February, a huge fire gutted one of the emirate's tallest buildings, destroying luxury flats in the Torch tower and triggering an evacuation of nearby blocks in the Dubai Marina neighbourhood.

In 2012, a massive blaze gutted the 34-storey Tamweel Tower in the nearby Jumeirah Lake Towers district. It was later revealed to have been caused by a cigarette butt thrown into a bin.