Investigators in Dubai were working to determine the cause of a spectacular fire that engulfed a 63-storey luxury hotel on New Year's Eve three hours before midnight.

The huge blaze at The Address Downtown hotel erupted around 9pm on Thursday, sparking panic but no reports of serious injuries.

Authorities went ahead with a dazzling fireworks display at the nearby Burj Khalifa – the world's tallest skyscraper – despite the inferno, the latest in a series of fires in recent years to hit the buildings that make up Dubai's futuristic cityscape.

They said the fire is believed to have erupted from the outside of the building on its 20th floor before spreading along its whole facade. But the exact cause was not yet known.

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 lightly 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.-Reuters