This study is positioned at the crossroads of pedagogical action learning and action research, as it addresses the challenges in designing and implementing action-learning approaches in the Middle East. In particular, it focuses on the United Arab Emirates (UAE) and draws from a reflective analysis of a university-industry 'business challenge' collaboration. This resulted in the development of the co-creative learning community (CCLC) approach in which students, instructor, academic peers, and business practitioners can engage in co-creative, collective learning. The CCLC model was found to be an effective, learner-centric approach that can improve student engagement while addressing complex learning goals, as it requires active collaboration and knowledge exchange between the learning community participants. The CCLC model developed in this study will benefit university faculty in the Middle East who aim to incorporate action learning in their classrooms to facilitate the learning of a more complex set of skills, as expected from 21st-century higher education institutions.