The tower, which will be in the Madinat al-Arab area, will reach 47-floors and will have studio, one, two and three-bedroom apartments.
There will also be a number of shops on the ground floor.
The project is expected to be completed in 2011.
Al-Madar Investments, part of the Al-Madar Group, has previously announced a number of towers in the Dubailand development, including the 81-floor Siraj tower.
Infrastructure work on Madinat al-Arab is continuing and the project, one of seven phases in Dubai Waterfront, is expected to be completed in 2018.
Other phases include Boulevard Park, Canal district, Venetia district, Badrah district and Omran district (MEED 4:3:08).
Dubai Waterfront is being developed by the local Nakheel.