Dubai-based developer Strategic Housing Group (SHG) announced on Monday a new project to build a new student housing accommodation complex in Dubai International Academic City, offering rooms for higher education students at fees ranging between 16,000 - 30,000 UAE dirhams ($4,357 - $8,169) per semester, the company's CEO has said.

The Dubai Myriad student housing complex is SHG’s second in the Gulf Cooperation Council (GCC) region. The company last year launched a 1,550-room housing complex near Sultan Qaboos University (SQU) campus in Oman, according to Oman’s Muscat Daily newspaper. Total investment in the Oman Myriad project stood at $110 million, according to the report. 

Speaking at a press conference announcing the project’s launch in Dubai on Monday, SHG’s CEO Vikram Rao said that the complex will be built over 58,000 square metres and contain seven accommodation blocks with a total of 1,820 rooms. Accommodation will be segregated between male and female students, but community areas will be open to both genders. Specially-adapted rooms will also be available for students with disabilities.

Rao also said that fees charged to students are inclusive of all utilities but exclusive of value-added tax (VAT) if the tax is to be applied on the complex's services.

“We need to clarify it (the application of VAT on the compound’s fees). It is our understanding that VAT does not apply on the rent or lease,” Rao said in response to a question from Zawya.

The United Arab Emirates has earlier this year imposed a five percent rate of VAT on a number of products and services, including some educational services.

“Dubai has become a serious higher education city and has exceeded 60,000 students. I think we are close to about 65,000 higher education students in the city.  Such growth starts requiring facilities and infrastructure, particularly housing, and this is where we step in,” Rao said during the press conference.

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(Reporting by Yasmine Saleh; Editing by Michael Fahy)
(yasmine.saleh@thomsonreuters.com)

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