Plumes of smoke were still visibly rising from a 63-story luxury hotel in Dubai Friday, after firefighters spent all night battling the New Year's blaze.

CNN reports the fire engulfed the Address Downtown Dubai hotel on Thursday night, as a New Year's Eve fireworks celebration commenced nearby.

Witnesses said they heard explosions coming from the flaming building. Bruce Szczepanski watched the scene from a hotel balcony nearby.

"There are huge flames, and you can hear the structure falling and the thuds," the witness said to CNN, nine hours after the fire began.

Another witness caught footage of the blaze.

Officials said by Friday afternoon civil defense crews had almost completely extinguished the blaze that left half of the tower charred.

"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," a spokesperson said in an email to Reuters.

While many cities worldwide were on high alert due to the threat of terror attacks, there is no indication that the incident was terrorist related.

A source told CNN that the disaster began on the 20th floor of the hotel, where a set of curtains somehow caught fire.

The hotel is in close proximity to the landmark Burj Khalifa, the tallest building in the world and site of an annual extravagant New Year's fireworks spectacle. Many of the spectators were evacuated prior to the show.

No one was seriously injured in the incident, although at least 16 people had to receive treatment due to smoke and overcrowding.

Dubai is considered one of the most developed and peaceful cities in the Middle East. However it has been the subject of critiques and skepticism concerning the safety of its rapidly-constructed buildings.

According to Glenn Corbett, professor at the John Jay College of Criminal Justice, the rapid spread of the fire may have been due to an aluminum component used in many of Dubai's structures.