Students at NYU's Abu Dhabi site will have to meet the same requirements as those at its home campus in Washington Square, New York.
Students at NYU's Abu Dhabi site will have to meet the same requirements as those at its home campus in Washington Square, New York.
Students at NYU's Abu Dhabi site will have to meet the same requirements as those at its home campus in Washington Square, New York.
Students at NYU's Abu Dhabi site will have to meet the same requirements as those at its home campus in Washington Square, New York.

It's up to you, New York, New York


Daniel Bardsley
  • English
  • Arabic

Despite the difficulties some US institutions have in attracting students to their UAE campuses, the head of New York University's proposed branch in Abu Dhabi is confident that finding good-quality students will not be a problem. Mariet Westermann, the vice chancellor of the forthcoming NYU campus on Saadiyat Island, said the university would recruit students from across the region and beyond and was not just planning to take young people from the UAE.

George Mason University, which began degree programmes in Ras al Khaimah in 2006, and Michigan State University, which starts courses in Dubai this month, have recruited far fewer students than predicted. In its first year, George Mason had fewer than 40 students on bachelor's degree courses compared with a target of 200, while Michigan State is likely to have 70 at most when it launches at Dubai International Academic City, despite earlier predictions that there would be 200.

The institutions had expected strong demand from young people keen to secure a degree from an American university, but who preferred to study in an Arab country. The UAE has several well-established American-curriculum universities, some accredited by US bodies, but until George Mason opened there were no degree-awarding branch campuses of US universities. Dr Westermann said she was confident NYU's new branch, funded by Abu Dhabi emirate, would be "up to speed" in finding "real top talent".

"I think we've been very mindful that we need to have a very rigorous [recruitment process] so we have a cosmopolitan student population," she said. "We feel very confident that we can have a very strong and well-prepared student population. Our pursuit is a worldwide process and our sense is that, in the region we're looking at, we can find a strong entrance class." She described Abu Dhabi as a "very forward-looking place", and said the "transformative character" of the society would attract students.

Recruitment would focus, she said, on the Middle East and South Asia, although some students were likely to come from outside this area. NYU has said it will not admit any student to Abu Dhabi who would not gain entry to its main campus in Washington Square, New York. Due to open in 2010, the Saadiyat Island branch will have space for 2,000 undergraduates, 800 postgraduates and 200 students on foundation courses.

George Mason University, using the former Ras al Khaimah Men's College premises, aims to have about 2,000 students. The university opened in 2005 with an English-language programme and began undergraduate courses a year later. Last year, undergraduate enrolment increased to 83, a number the university hopes to double in the coming academic year. "It's been a period to learn lessons about challenges with language and integrating into the community," said Professor Zaid Adib Ansari, the acting vice president of the RAK campus.

Prof Ansari said RAK may not seem as attractive a place for young people to live as Dubai or Abu Dhabi and this could partly explain the modest interest from applicants. Nevertheless, the university hopes to reach its full capacity of 2,000 within seven to nine years. A spokesman for Michigan State University said it had struggled to attract applicants with good English-language skills and so had lowered the minimum score requirement on tests. "The students now entering universities have not had the benefit of the current [emphasis on] English throughout the UAE," she said. "That's been a key component [in not recruiting as many students as expected]."

Prof Ansari said the branch's lack of general business degrees might also have dampened numbers, so the campus might offer different courses. "We originally thought we would have more students, but many made their decisions far earlier in the year and I also think there's more of a business focus in Dubai on the part of students," she said. "Awareness will grow and our programme offerings will increase next year."

@Email:dbardsley@thenational.ae

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes