The world's second Sphere will be built in the United Arab Emirates' capital, following the opening of the first mega-domed entertainment complex in Las Vegas.
Late Tuesday, Abu Dhabi Department of Culture and Tourism and Sphere Entertainment announced plans to bring Sphere to the Middle East.
Under the deal, Abu Dhabi will pay Sphere Entertainment a franchise fee and use its design to build a second store. The Abu Dhabi government will pay for the construction of the structure and annual royalties to Sphere Entertainment for “creative and artistic content.”
The announcement did not provide any funding information or say where in the UAE capital the Sphere would be built. The Abu Dhabi government did not immediately respond to questions about the project on Wednesday. Sphere declined to comment beyond its initial announcement.
The $2.3 billion Las Vegas Sphere opened in 2023 as the gambling capital's most expensive entertainment venue. High-definition LED screens wrap around half of the 17,500-seat audience. At 366 feet (111 meters) high and 516 feet (157 meters) wide, the world's largest spherical structure has hosted concerts and sporting events.
However, efforts to build a second sphere overseas have stalled. London Mayor Sadiq Khan last year rejected plans to build it in the city's east, citing a number of concerns, including light pollution.
Abu Dhabi is seeking to differentiate itself as a travel destination from neighboring Dubai, an energy-rich federation of seven sheikhdoms on the Arabian Peninsula.
The UAE is also preparing to open the country's first casino. The only emirate currently under construction is Ras Al Khaimah, but other emirates in the country are also believed to be actively considering building their own emirates.
Sphere is the brainchild of James Dolan, executive chairman of Madison Square Garden and owner of the New York Knicks and Rangers.
Sphere's stock rose more than 6% to close at $48.91 per share on the New York Stock Exchange on Tuesday. This is a big boost after Benchmark downgraded Sphere Entertainment to a “sell” rating last month, citing concerns about Sphere's “scalability, high production costs and potentially underwhelming profitability outlook.” It became.
Meanwhile, some projects in the United Arab Emirates (UAE) have failed or been delayed for years after being announced due to the economic downturn.
According to trademark filings, Sphere Entertainment's trademark applications have also been filed in Japan, Oman and Qatar, but no plans have been announced for similar venues. Companies often use their names as protected trademarks in other markets, without necessarily operating in that market.
