This paper investigates the paradox of research productivity of higher-education institutions in the Arab Gulf Countries. Exploring the case of the United Arab Emirates (UAE) the article fills the gap in the literature on the Gulf higher education research efficiency. Despite the considerable investment into higher education, UAE universities showed rather slow growth in research output. This puzzle was tackled to present possible policy outcomes relevant for research productivity in higher education institutions located in the emerging economies. The study highlights the research productivity indicators dynamics for GCC countries and brings detailed analysis on the research output and input for the UAE universities. We argue that to succeed in academic efficiency the county needs to increase its research investments and diversify research-boosting policies and practices. The policies should focus on work-attractive long-term conditions for the faculty/researchers, home-based doctoral education system and home-trained human resources.