“(Dubai) was caught up in a lot of factors, many of which … were out of our control,” Simon said during a telephone press conference.

“We weren’t able to recruit as many students as we hoped. It would not have been a terrific academic experience for the small number of students in Dubai.”

Ending Dubai’s undergraduate program will cost the university an estimated $1.3 million to $1.7 million, which will be paid for using unrestricted income from the university’s investments.

Simon said state appropriations and tuition dollars will not be used to pay for the costs. The cost estimates come from additional liability caused by low enrollment and other requirements regarding employee severance, in accordance with contractual obligations and Dubai law.

Enrollment for the university’s satellite campus initially was expected in the 400-800 range. There currently are 85 undergraduate students enrolled at the campus.

MSU Dubai’s website lists five undergraduate programs as being offered at the campus. In addition to undergraduate students, more than 20 faculty and staff members are expected to be affected by the decision.

MSU Dubai’s one graduate program — human resources and labor relations — will remain. Officials also have said the university intends to maintain a presence in Dubai through research, outreach and study abroad, among other things.

“We did not believe that we can provide students the experience necessary (with) so few students in so many majors “ Simon said.

The few summer classes in Dubai will finish, but there will be no classes in the fall and MSU Dubai will not accept new undergraduates.

Students at MSU Dubai have the option of attending the East Lansing campus, Simon said.

Simon rejected early reports of the campus’ closure that stated the university lost millions of dollars in the endeavor.

MSU Dubai was funded in part by the Dubai government. A $3.5 million loan from the government was to be repaid through academic revenue generated.

However, because MSU did not churn a profit, it is not required to repay the loan, Simon said.

There also was an additional $3.4 million in loans expected from other financial backers that Simon said will instead be funded through a grant from the MSU Foundation. The MSU Foundation is a nonprofit organization that works to promote the university’s aims.

University spokesman Terry Denbow said Monday that MSU Dubai was an endeavor not without its share of challenges. Denbow could not be reached Tuesday for further comment.

“It’s not unusual that you refocus efforts or get into a new endeavor like this,” Denbow said.

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