Some UK universities are considered "no-go zones" for Jewish students because of alleged high levels of anti-Semitism.
Clampdowns on supposed anti-Semitic incidents are not being carried out because of institutions' fear of offending potential benefactors in the Middle East, according to an academic leader.
In recent months, a number of incidents have been reported of Jewish students claiming physical or verbal assault.
Meanwhile, a review of anti-Semitism at the Oxford University Labour Club in August found "clear" examples of racism against Jews.
Similarly, in October a committee of MPs found that comments by the president of the National Union of Students describing Birmingham University as a "Zionist outpost" smacked of "outright racism".
Baroness Deech, a former higher education adjudicator, told the Daily Telegraph she believed there may be a link to the relationship between universities and Middle Eastern donors.
"Many universities are in receipt of or are chasing very large donations from Saudi Arabia and the Gulf states and so on, and maybe they are frightened of offending them," she said.
"I don't know why they aren't doing anything about it, it really is a bad situation."
She added: "Amongst Jewish students, there is gradually a feeling that there are certain universities that you should avoid."
Saudi Arabia has been a major donor over the last 10 years, the Telegraph said.
In 2005, Sultan bin Abdulaziz alSaud, the late crown prince, gave £2 million to Oxford University's Ashmolean Museum.
Meanwhile, Sheikh Dr Sultan bin Muhammad al-Qasimi, the ruler of Sharjah in the United Arab Emirates, has given more than £8 million to Exeter University over two decades