The higher education system in the Arab world has expanded, and along with it the challenges facing Arab universities have increased. These are apparent in the gap between the outcomes of higher education and the requirements of the labor market, the spread of graduate unemployment, the weakness of scientific research, and the inability to keep pace with accelerating technological developments. Based on a sample of 742 academics from 19 Arab states, this study surveyed higher educational governance in the Arab world, the pull of Arab universities and their concentration of talent among students, academics, and researchers, and the extent to which they enjoy adequate funding – these requirements constituting the entryways to world-class research universities. The study then examines their respective effect on the outputs of good research universities such as: quality of scientific research, quality of graduates, and the ability of the university to transfer and localize technology in the Arab world. The findings reveal that universities that have instituted principles of good governance, succeeded in attracting talent, and secured suitable funding, were able to achieve quality of scientific research and graduates, and helped transfer and localize technology.