The study aimed at finding out whether online courses are currently used at Saudi higher education institutions, in which majors online courses are offered and which delivery systems are used. It was found that only 6 universities (43%) are currently offering online courses using WebCT or Blackboard. The amount and type of online courses offered are not proportionate with the number of colleges, departments and faculty at those universities. The current use of WebCT and Blackboard is not cost-effective. Lack of motivation, online teaching skills, training in technology integration, administrative support, inadequate infrastructure and funds contribute to the inadequate use of online courses. Since integration of technology in higher education is inevitable, a number of recommendations for the successful adoption, integration and use of online instruction are given.