Universities receive a great deal of attention by governments due to its vast importance in development and economy. Productive type of universities are the most affective in this regard as they are producers of income, research, patents, intellectual activities, and good graduates. No wonder, they are always ranked highly among international universities. Very few Arabic universities are of this type and were able to make it in international rankings. Several reasons for this shy appearance of Arabic universities, of which funding and its management are of prime importance. This study aimed to find out ways to improve the status of Arabic Universities in this regard. Several funding indicators were found to be positively related to good ranking of universities namely: total income, governmental funding, income/students, and extent of financial autonomy. In this context, this study recommends the following considerations to be addressed to improve the funding environment of Arabic universities: differentiation, privatization, self-funding, endowments, number of students, diversification of income, intellectual concentration, and regulations. International universities do not differ a lot from the Arabic universities in capabilities and abilities. Its main superiority is in its organization, governance and administration. If the Arabic universities improve their environment by making it more productive, stimulative, and attractive of minds, it will make it among the suburb international universities. Key Words: Arabic Universities, University funding, University Ranking.
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