The Tower at Dubai Creek Harbour - a joint venture between Emaar Properties and Dubai Holding, the investment vehicle of the emirate's ruler, Sheikh Mohammed bin Rashid al-Maktoum - will be completed in 2020, Dubai's government said.
Its statement did not say how high the tower would be, nor how much it might cost.
Guinness World Records defines a tower as a structure in which less than 50 percent of the total height is useable floor space.
The world's tallest tower is the Tokyo Sky Tree, a 634-metre-high broadcasting, restaurant and observation tower.
Dubai, a major tourism and entertainment centre, is continually laying plans for new attractions.
Its new tower, part of a plush new residential area next to a waterfront, will feature several garden-themed observation decks, it said.
The Burj Khalifa is 829.8 meters (2,722 feet) high.