The 23-year-old Indian suspect, who was detained by other workers, was arrested after the police recovered the knife used for killing another 29-year-old Indian national, Khaleej Times reported.
The suspect and the victim have not been identified in the report.
Major-General Khalil Ebrahim Al Mansouri, Assistant Commander-in Chief of Dubai Police for Criminal Investigation Affairs, said the suspect had an argument with the victim over who would cook first in the kitchen.
"They had some disputes two months ago and they didn't speak to each other. At 8:30 pm, a heated argument between them led to a fight and the suspect stabbed the victim several times. He was rushed to hospital but was pronounced dead," he was quoted as saying by Gulf News.
The suspect was seen by other workers running on the first floor of the accommodation with his clothes covered in blood and then jumping from the first floor.
Other workers came out and caught the suspect before calling the police.
According to initial reports, the victim was the one who attacked the suspect with a knife, injuring his fingers. He then snatched the knife and stabbed the victim several times in the back.
The suspect was planning to leave the UAE on the same day as he had resigned his job.