(TIME) -- Local executives affectionately call him Sheik Mo. From the nickname, you would hardly know that he is the Crown Prince and de facto ruler of Dubai and the man who has directed the tiny emirate's transformation from an ancient Persian Gulf port into a glitzy international hub of spas and skyscrapers - and a beacon of modernity for the Arab world. Sheik Mohammed bin Rashid al Maktoum is building the Singapore of the Middle East, a free port where business and ideas can mix. On behalf of Dubai's ruling al Maktoum clan, Sheik Mohammed, 56, has spurred growth by channeling government funds, providing infrastructure and slashing red tape for new resorts, business centers and port facilities. The sheik's tax-free policies have helped attract global brands like Microsoft to set up in Internet City, a free-trade zone for ebusinesses. Some 5 million tourists a year stream to Dubai's beach resorts, anchored by the superluxe Burj al Arab. The sheik's latest projects are a series of man-made islands featuring luxury hotels, and purportedly the world's tallest building. Dubai's GDP has rocketed from $8 billion to $20 billion since 1995. Says Osama Gargash, senior manager of Emirates Islamic Bank: "Sheik Mohammed doesn't have the word failure in his dictionary." --By Scott MacLeod/Cairo With reporting by Tanya Goudsouzian/Dubai