The second Sphere in the world is set to be built in the capital of the United Arab Emirates after the first giant dome entertainment complex opened in Las Vegas.
Abu Dhabi’s Department of Culture and Tourism and Sphere Entertainment Co. announced the plan on Tuesday to bring a Sphere to the Middle East.
According to the agreement, Abu Dhabi will pay a franchise fee to Sphere Entertainment to construct the second location using its designs. The government of Abu Dhabi will cover the cost of building the structure and will also pay annual fees to Sphere Entertainment for “creative and artistic content.”
The announcement did not provide details about financing or where the Sphere will be located in the Emirati capital. The Abu Dhabi government did not respond to questions about the project on Wednesday, and Sphere did not comment further beyond the initial announcement.
The Las Vegas Sphere, which cost $2.3 billion, opened in 2023 and is the most expensive entertainment venue in the gambling capital. It features a high-resolution LED screen that wraps halfway around the 17,500-seat audience.
It has hosted concerts and sporting events inside the world’s largest spherical structure, which stands at 366 feet (111 meters) tall and 516 feet (157 meters) wide.
However, attempts to build a second Sphere abroad have faced challenges. Last year, London Mayor Sadiq Khan turned down a plan to build one in the city’s east due to concerns, including light pollution.
Abu Dhabi is working to set itself apart as a travel spot from nearby Dubai in the UAE, which is a wealthy federation of seven sheikhdoms on the Arabian Peninsula.
The UAE is also getting ready to open its first casino. Currently, the only one being built is in the emirate of Ras al-Khaimah, but other sheikhdoms in the country are thought to be looking into having their own casinos as well.
Sphere was created by James Dolan, who is the executive chair of Madison Square Garden and the owner of the New York Knicks and Rangers. On Tuesday, Sphere’s stock rose more than 6% on the New York Stock Exchange to $48.91 a share.
This is a significant increase after Benchmark downgraded Sphere Entertainment to “sell” last month due to worries about Sphere’s “scalability, high production costs, and a possibly disappointing profitability outlook.”
At the same time, some projects in the UAE have either not been built or have been delayed for years after being announced during economic downturns.
Trademark filings show that Sphere Entertainment Co. has also filed trademarks in Japan, Oman, and Qatar, although there are no announced plans for similar venues there. Companies often file trademarks in other markets as a protective measure even if they do not have business there.
