The United Arab Emirates is set to welcome the world's second Sphere entertainment complex, following the success of the first one in Las Vegas. The announcement was made by Abu Dhabi's Department of Culture and Tourism in collaboration with Sphere Entertainment Co. The plan involves Abu Dhabi paying a franchise fee to Sphere Entertainment for the construction of the new Sphere using its innovative designs. Additionally, the government of Abu Dhabi will cover the costs of building the structure and pay annual fees to Sphere Entertainment for creative and artistic content.
While specific details about the financing and location of the new Sphere in Abu Dhabi were not disclosed, the project signifies the Emirati capital's ambition to enhance its entertainment offerings. The Las Vegas Sphere, which opened in 2023, stands as the most expensive entertainment venue in the gambling capital, boasting a high-resolution LED screen wrapping around half of the 17,500-seat audience. This colossal spherical structure, towering at 366 feet tall and 516 feet wide, has already hosted various events, including concerts and sporting activities.
Despite the success of the Las Vegas Sphere, attempts to replicate the concept abroad have faced challenges. A proposed Sphere in London was rejected due to concerns such as light pollution. However, Abu Dhabi's move to introduce a Sphere aligns with its efforts to distinguish itself as a premier travel destination in the UAE, distinct from neighboring Dubai.
The UAE is also making strides in the entertainment industry, with plans to open its first casino. While construction is underway in Ras al-Khaimah, other emirates are reportedly exploring similar ventures. The Sphere concept was conceived by James Dolan, the executive chair of Madison Square Garden, known for his ownership of the New York Knicks and Rangers.
Following the announcement, Sphere Entertainment's stock saw a significant increase, closing more than 6% higher on the New York Stock Exchange. This positive development comes after concerns were raised by Benchmark regarding scalability, production costs, and profitability outlook of the Sphere project.
Trademark filings indicate that Sphere Entertainment Co. has also registered its name in Japan, Oman, and Qatar, hinting at potential future expansions. While plans for additional venues have not been confirmed, trademark filings are a common practice for companies safeguarding their brand names in various markets.
