Acknowledging its potential on diversifying economy and attaining sustainable development, the Gulf Cooperation Council (GCC) countries, comprising of Bahrain, Kuwait, Oman, Qatar, Kingdom of Saudi Arabia, and United Arab Emirates, have been investing heavily on digital transformation and keeping pace with technological advancements. In particular, over the last years, with the unified efforts on transitioning to a knowledge society and enhancing educational outcomes, GCC countries have been demonstrating a strong dedication on integrating artificial intelligence in education (AIED). This systematic review investigates characteristics of artificial intelligence (AI) research in the region, identifying advantages and disadvantages of AI utilization in higher education, and exploring main issues accompanied with possible directions for the future. In the Scopus database, 32 studies were analyzed, all open access documents affiliated to a GCC country, having artificial intelligence and higher education, or related terminologies as keywords. Results revealed that AI applications were beneficial for institutions to improve educational outcomes, assist in decision-making, and advance institutional systems. No study reported negativity resulting from AI practices. However, important barriers were identified that hinder the full deployment of AI in higher education, including poor technology skills, inadequate technology infrastructure, resistance in leveraging traditional approaches in education, and challenges related to structural complexity of Arabic language. Future directions are proposed, offering opportunities for practitioners and research potential for scholars.