The world’s second Sphere is slated to rise in the capital of the United Arab Emirates following the inauguration of the first colossal dome entertainment complex in Las Vegas. Late Tuesday, Abu Dhabi’s Department of Culture and Tourism and Sphere Entertainment Co. revealed the ambitious plan to bring this iconic structure to the Middle East.
According to the agreement, Abu Dhabi will pay a franchise fee to Sphere Entertainment for the design blueprint. Besides covering the construction costs, the Emirati government will also remit annual fees to Sphere Entertainment for creative and artistic content. Neither financing details nor the specific location within the capital were disclosed in the announcement. Abu Dhabi’s government did not respond to inquiries on Wednesday, and Sphere Entertainment refrained from commenting further.
This undertaking follows the grand opening of the $2.3 billion Las Vegas Sphere in 2023, the most expensive entertainment venue in the city known for its lavish spectacles. The Sphere boasts a high-resolution LED screen encircling its 17,500-seat arena and stands as the world’s largest spherical structure at 366 feet tall and 516 feet wide. Since its debut, it has hosted a plethora of concerts and sporting events.
Attempts to construct a second Sphere internationally have faced hurdles. Last year, London Mayor Sadiq Khan rejected a proposed location in the city’s east, citing various concerns including potential light pollution. On the other hand, Abu Dhabi is intent on distinguishing itself from neighboring Dubai as a premier travel destination. The UAE, a federation of seven energy-rich sheikhdoms on the Arabian Peninsula, is also on the brink of opening its first casino. While currently under construction in the emirate of Ras al-Khaimah, other sheikhdoms are reportedly contemplating similar ventures.
The visionary behind the Sphere concept is James Dolan, the executive chair of Madison Square Garden and owner of the New York Knicks and Rangers. Tuesday saw Sphere stock soar over 6% on the New York Stock Exchange, closing at $48.91 a share—a significant uptick following Benchmark’s downgrade of Sphere Entertainment to “sell” last month due to concerns over the Sphere’s scalability, high production costs, and uncertain profitability outlook.
Nevertheless, some UAE projects have historically been stalled or scrapped due to economic downturns after their announcements. Sphere Entertainment Co. has also filed trademarks in Japan, Oman, and Qatar, although there are no current plans for similar venues in these locations. Companies often secure trademarks in various markets as a precautionary measure without immediate business intentions.