Despite the blaze at the Address hotel, the display at the nearby Burj Khalifa, the tallest building in the world, started as planned at midnight.
Officials say the fire has been brought largely under control and 16 people suffered mostly minor injures.
It was unclear what caused the fire, which broke out as large crowds had gathered to ring in the new year.
People were asked to leave the area around the Address Downtown Hotel, which was evacuated.
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