The Arab Gulf States are the largest hosts of international branch campuses globally. By increasing higher education capacity in the Arab Gulf States by over 30,000 places, foreign institutions have, through various forms of transnational provision, increased significantly the accessibility of higher education to young people living in these countries. However, critics of transnational higher education have suggested that it can be seen as the new neo-colonialism which benefits the providers much more than the receivers. This study aims to identify the stakeholders that might benefit from transnational higher education in the Arab Gulf States, and to examine the extent to which those stakeholders are actually benefiting from it. It was found that transnational higher education is playing a large role in the economic, cultural and social development of the Arab Gulf States.