Experienced chauffeur Peter Robinson, 52, was "head-hunted" to drive Sheikh Zayed Bin Saeed Al Nehayen while he was studying at the London School of Economics from November 2009.
Zayed is the son of Sheikh Saeed Bin Zayed Al Nehayan, who is the half-brother of the president of the United Arab Emirates.
But Mr Robinson claims he was sacked because the family feared he would damage their reputation by going to police to report Sheikh Zayed's bodyguard, Safa Tattan, for illegally injecting steroids in the run-up to a body-building competition.
He said he feared that Tattan was a bad influence on the young sheikh because they shared the same gym.
Mr Robinson told Central London Employment Tribunal that shortly after he reported the matter to Terri Pearson - personal assistant of Sheikha Bint Hamdan Al Nehayan, Zayed's mother - he was dismissed without explanation.
Mr Robinson said he soon became aware that Mr Tattan was slacking in his duties as a bodyguard, made racist remarks towards him and asked a staff member to buy him some syringes, he told the tribunal.
He said: "I said it was very odd for him to asking about this type of thing and said it looked like he was taking drugs. He was preparing to compete in a body-building competition."
He went on: "I remember saying that I hoped Safa was not intending on taking steroids around Zayed as they both attended the gym together.
"If he were to influence him it would have dire consequences. My concern was the safety of my principal, Zayed."
He told the tribunal he confided in Ms Pearson his fears that Mr Tattan was "showing signs of substance abuse" and that he had been forced to take him to hospital on two separate occasiosn.
He said: "I had to take him to hospital due to complaints from him that his legs and arms were hurting. He said he always felt tired and his heart was beating fast."
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