Gulf Cooperation Council [GCC] countries are basically commodity-based economies. Despite a remarkable socio-economic progress when compared to their pre-oil past, they are now facing problems arising from a predominant dependence on oil, lack of skill-diversity among nationals, over-dependence on expatriates, growing need for public services with increasing population, and insufficient innovation. Despite rising literacy rates realigning their workforce to the job-markets has remained elusive. A diversified, knowledge-based economic model is a solution to the problems and it basically depends on universal, equitable and quality education for the nationals. An extensive review of available literature has been undertaken to study the current problems and to come up with appropriate solutions. The governments alone, despite their oil-wealth, were found unequal to the task of catering to the growing educational needs. Private sector involvement, including privatization and public-private partnership, was found to provide more finances, reduce the state fiscal burden, and enhance efficiency, productivity, innovation, accountability and transparency in education delivery, besides offering better quality in higher education. A holistic long-term plan would be needed to achieve the objectives, while overcoming some of the constraints of the private sector. That is the focus of present study for a suitable educational policy in the context of GCC countries. Such studies may, in the future, also be extended to include the Middle East and North African [MENA] countries.