The four-year-old colt was claiming his seventh straight victory, including the lucrative Pegasus World Cup Invitational Stakes in January.
Arrogate started as an overwhelming favorite to win the 2,000-meter race at Meydan Racecourse, but was baulked coming out of the stalls and had to come from the back of the field under jockey Mike Smith.
The 2016 Breeders' Cup Classic winner eventually hit the front in the closing stages to come home ahead of the earlier leader Gun Runner with Neolithic in third place.
It was the third Dubai World Cup win for Bob Baffert, who also trained the legendary Triple Crown winner American Pharoah.
Such is the regard Arrogate is held, Baffert drew comparison after seeing his horse make a remarkable recovery from 20 lengths behind.
"That was 'Plan F'!" Baffert said. "But that's the best I've ever seen in my life, it's unbelievable.
"I guess he knew where he was but it just goes to show you how great this horse is, he's just a great horse. Mike did a great job, he didn't panic."
"He's just amazing. I've never ridden a horse like this," jockey Smith added.
The winning horse's connections, with owner Prince Khalid Abdullah, take home a $6 million prize from the $10 million pot for the Dubai World Cup, making Arrogate the highest earner in racing history.
Florent Geroux, rider of second-placed Gun Runner, believed his horse was in with a chance "until Arrogate arrived, he was just awesome," he said.