State media say the Torch Tower which is one of the tallest buildings in the world is now engulfed in flames with burning debris falling down on to the streets.
When it opened in 2011, The Torch Tower was the tallest residential building in the world, standing at more than 330m high.
Dubai police cordoned off the area around the building, keeping people about a block away from the fire and the falling debris. Authorities have previously acknowledged that at least 30,000 buildings across the UAE have cladding or paneling that safety experts have said accelerates the rapid spread of fires.
The government said it was working on providing shelter for those affected by the Tower Torch fire.
The recent fire could revive questions about the safety of the materials used on the exterior of the Torch Tower, as well as other tall buildings across the nation.
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However once Karunaratne was bowled off the inside edge trying to sweep Ashwin, the innings fizzled to a quick close. But obviously you can not guarantee anything, ? he added. "It's a massive headache but I guess a good one".
Residents are now being sheltered in three nearby hotels, according to the Dubai Media Office, which has tweeted images of firefighters rescuing pets from the building.
The cause of the 2015 fire is unknown. Officials sent around four fire stations to control the flames.
Fire engineers said that fire was likely accelerated by the exterior cladding or siding which was replaced a year ago.
According to reports this evening firefighters are now tackling a large at a residential skyscraper in Dubai in the United Arab Emirates.
After that fire, the Dubai Civil Defense announced restrictions in 2016 on using exterior paneling on new construction, including forbidding it on towers taller than nine floors.
A 63-storey Dubai luxury hotel caught fire as Dubai celebrated New Years Eve last year, again with no injuries or deaths reported.