According to Dubai Media Office, no casualties were reported yet at the accident site near Burj Khalifa.
No one was injured in the inferno, though three workers were rescued from inside the structure and taken to the hospital for examination, authorities said.
The fire is also reportedly causing traffic congestion on the Financial Centre Road. And in 2012, a blaze gutted the 34-storey Tamweel Tower in Jumeirah Lake Towers district.
Smoke billows near the Dubai Mall and Burj Khalifa, the world's tallest building, after a fire hit the construction site. Every few minutes, small blasts could be heard, presumably from exploding propane or welding tanks left behind by construction workers.
Dubai Media Office confirmed the incident, stating the blaze broke out in the Fountain Views towers, with Dubai Civil Defence authorities launching cooling operations around 8.45am.
The fire is now under control.
The property has three towers each 60 floors high and had been due to be completed in April 2018.
A fire rages at an under-construction tower in Dubai. Police have cordoned off nearby roadways. Black smoke painted the sky black in the heart of Dubai and triggered massive traffic jams around the Dubai Business Bay on Sunday morning. "It looks like it was quite low down", said witness Anthea Ayache.