Residents of Godolphin Cross near Helston emailed him in a desperate attempt to raise funds.
The village shares a name with the world famous Godolphin stables, founded by the sheikh, Cornwall Live reports.
Richard Mckie from the Godolphin Cross Community Association said: "We are extremely appreciative."
The group needed Â£90,000 to buy the chapel that they intend to convert into a community centre, and had raised Â£25,000 towards it.
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It's not known how much was contributed by the sheikh, but Mr Mckie said "it has pushed us across the line".
One villager, Valerie Wallace, had the idea as a last ditch attempt, with the group having failed to raise sufficient funds elsewhere.
"We thought nothing of it and then we began to get phone calls from Dubai," Mr Mckie said.
"We thought we were being hoaxed but it was no hoax."
The sheikh, who has been invited to visit the village, was unavailable for comment.
The group now needs to raise a further Â£350,000 to restore the hall.
The ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum, has helped a small Cornish village buy its Methodist chapel.