This article compares the private higher education (HE) systems in Germany and the United Arab Emirates (UAE). We examine the historical, political, and demographic contexts of private universities in both countries, as well as the role of the state in regulating and shaping the private HE sector. We then explore the interrelation of the public and private HE sectors in Germany and the UAE, with a focus on how competitive and market forces, as well as state regulation, affect the HE system. Finally, we reflect on the homogenising and differentiating drivers that contribute to explaining the private HE landscape in both countries. We use neo-institutionalist approach to identify different varieties of isomorphism in the two countries. Even though the growth and shape of the private higher education sector in both countries reflect international normative, mimetic and coercive pressures, our study suggests that the development of the private sector is moderated by country-specific historical developments as well as by political contexts that accelerate or slow down market dynamics.