Muscat convinced of Jordanians’ ‘sound business model’ for private university

Prime Minister Joseph Muscat said he was convinced of the success the American University of Malta will have, expressing confidence in the “sound business model” presented by Sadeen Group – the Jordanian investors who will be regaled with 90,000 square metres of virgin, agricultural land in the south of Malta to build a private university

Speaking to the press in Frankfurt, he revealed that Sadeen had increased their request for land at Smart City from 600 square metres to 1,000 square metres, and that it was “poaching the best academic staff” to open their first campus in Smart City by September 2016.

Sadeen will fork out €40 million of the €115 million investment for its university, with the rest expected to be financed through “foreign direct investment”.

Muscat, while leaving open a window for the possible relocation of the planned university from Zonqor Point to elsewhere, said he agreed with the “opportunity cost” that existed at the proposed site.

Speaking to journalists in Frankfurt, where he attended an economic forum organised by the Frankfurt Chamber of Commerce and Industry in collaboration with Malta Enterprise, Muscat said searching for an alternative site formed part of the MEPA process.

He said that passing on Fort St Leonard to the Sadeen Group to be used as part of their university was still on the cards, but that would also see the Jordanians paying for the restoration.

“We received mixed reactions from NGOs, with some enthusiastic about the idea of the Fort being used, and others dead-set against it. Searching for alternative sites is an exercise which is taking place – as the law dictates – but one has to see whether these sites are suitable,” Muscat said.

MaltaToday is also informed that plans by private individuals are in the pipeline for the former Jerma Hotel site in Marsascala.

“We can keep coming up with alternative sites, say Hal Far, but where would we then place the factories? Shall we do it in Sliema?” Muscat said of the tourist town that hosts dozens of hotels accommodating some of the country’s 1.5 million tourists annually.

“But yes, I understand there is a legitimate concern. We are aware of the issue but, really, there isn’t one perfect decision that will make everyone happy,” he said.

Muscat denied that the American University would result in just another land-grab as Smart City had, claiming that the land used for Smart City – a derelict industrial estate – was “far more pristine” than the land at Zonqor Point.

He insisted that the government was not after another white elephant, and that his government hadn’t come up with “a fait accompli”, with the group’s plans being open for public scrutiny.

He said Sadeen originally considered Spain but that it was also interested in coming to Malta, and that it convinced the government of its plans. “The proof of the pudding will be in the eating. It is a sound business model based on the geopolitical realities of the region with a strong team behind it, which is being assembled. Their figures are very realistic,” Muscat said.

In 2014, Sadeen Group also set up Sadeen Rehabilitation Services.

MaltaToday is informed that the Group had initially also come forward with a proposal to develop a rehab facility in Malta but, following talks with the government, it was decided that the Group should focus on the American University.

Muscat said the government is adamant that clauses included in the heads of agreement will ensure that if the investors fail to meet their targets, the government can go in and take back both the land and the university.

While Sadeen Group is evoking associations with the American Universities of Cairo and Beirut, the AUM is neither connected to the decades-old institutions, nor is it part of any brand. Its curriculum is carved out by Chicago’s De Paul University, ranked 110 by US News and 340 in a university ranking by Forbes.

In a letter sent to Muscat by Rev. Dennis H. Holtschneider, the President of DePaul University said the University was “thrilled to collaborate to develop high-quality American style curricula in the heart of the Mediterranean”.

According to the President, more than 20 of DePaul’s most distinguished faculty members contributed their expertise to create a curriculum that “implements their most current disciplinary knowledge and innovative practices”.