Financing higher education in Arab states: diversity in policies and practice

Purpose This systematic review examines the critical issues affecting the funding of higher education (HE) in the Arab region and synthesizes the solutions proposed in the existing literature to address these financial challenges. Design/methodology/approach In accordance with the PRISMA 2020 guidelines, a systematic search of electronic databases was conducted. A total of 26 relevant articles published between 2004 and 2023 were identified and included in the systematic narrative synthesis. Findings The synthesis highlights several interrelated challenges, most notably a persistent structural dependence on unsustainable public funding models. This reliance exacerbates an acute mismatch between educational outputs and labor market demands, alongside a significant attrition of human capital, a “brain drain.” These issues result in the inefficient use of educational resources and impede the region's readiness for the Fourth Industrial Revolution. While proposed remedies center on diversifying funding sources, such as rejuvenating philanthropic cultures, balancing government and business partnerships, and establishing strategic cost-sharing systems, effective implementation remains a major obstacle. Originality/value This review provides a systemic perspective that is largely absent from the regional literature by revealing that the financing gap reflects a complex governance-quality-migration feedback loop rather than an isolated budgetary issue.