Police in Fujairah, one of the UAE's seven emirates, say the fire began this morning in the seaside village of Dhadna.
Firefighters later extinguished the blaze. Dhadna is about 115 kilometers northeast of Dubai, along the Gulf of Oman.
The police statement said the dead included four boys and three girls, their ages between 5 and 13. It says all suffocated in the smoke.
Police say they are investigating what caused the blaze. They encourage citizens to install smoke detectors in their homes.