No casualty has been reported in the fire and three workers trapped inside the building have been rescued, police said.
Major General Rashid Thani Al Matroshi, Director of Dubai Civil Defence, said they are taking necessary steps to control the fire.
Cooling operations will continue, Matroshi was quoted as saying by Khaleej Times.
The building named 'The Address Residence Fountain Views' was under construction that was expected to be completed by April 2018, Dubai Media Office said.
Officials have confirmed that the fire was brought under control.
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Mohammad Jaseem, who lives in a building opposite to it, said his family woke up hearing the sirens of police cars and fire trucks. He said soon they realised it was a nearby building under construction that caught fire.
Eyewitnesses also saw helicopters and teams of fire trucks on site, as they cordoned off the areas and rushed to extinguish the flames.
The fire led to major traffic jams in the area with several roads being closed and people advised to take diversions.