A Dubai hotel in which two people died after a fire on Friday evening remained closed on Sunday, with police still present in the cordoned-off area.

Windows on both higher and lower floors of the Hyatt Place Dubai Baniyas Square in Deira were shattered due to the force of the blaze.

Dubai Media Office said on Saturday that the deaths were due to smoke inhalation. No further details have been released about the victims or the cause of the fire.

Witnesses said the fire started on the top floor of the hotel before being contained by fire crews.

Baniyas Square, typically a bustling neighbourhood filled with shoppers and tourists, had taken on a more sombre atmosphere in the wake of the fire.

The district is home to numerous hotels catering to tourists drawn to the charm of "old Dubai".

"It is sad two people have died. It's good that the civil defence contained the situation or else it could have been worse," another shopkeeper said, who also sells lifestyle and beauty products.

Dubai Civil Defence arrived at the site of the incident within six minutes and evacuated the area before tackling the blaze, Dubai Media Office said.

Authorities and Hyatt extended their condolences to the families of the deceased.

“We are devastated by Friday’s incident and the tragic loss of two lives," a Hyatt spokesperson said on Sunday.

"Our thoughts are with the families and loved ones affected during this difficult time. We are fully cooperating with the authorities during this ongoing investigation.”