Entertainment conglomerate, Sphere, solidifies strategies for growth in Abu Dhabi
In a strategic move aimed at bolstering its presence in the global entertainment industry, Sphere Entertainment Group has finalized an agreement with Abu Dhabi's Department of Culture and Tourism (DCT) on July 25, 2025. This deal marks the beginning of the construction and long-term operation of Sphere Abu Dhabi, a venue that promises to replicate the grandeur of the original Las Vegas Sphere.
The agreement, which spans 25 years with options for two 10-year extensions, grants DCT exclusive rights to develop additional Sphere locations across the Middle East and North Africa for a decade following the launch in Abu Dhabi. Notably, DCT will cover the entire cost of construction and pay royalties on ticketed experiences, intellectual property use, and pre-opening support services.
This partnership represents a significant shift for Sphere Entertainment, as it evolves into a franchise business model. The company, which had previously faced an operating loss of $108 million in Q4 2024 for the Las Vegas installation despite multiple high-profile performances and positive reception, views expansion as a survival strategy.
The planned Sphere Abu Dhabi is expected to mirror the original 20,000-seat structure, offering a unique blend of live performance, cinema, art, and technology. Interestingly, future Sphere venues may have a smaller capacity of 5,000, providing greater flexibility. Regional partners will invest and operate local Sphere locations by licensing Sphere's immersive technology, content, and brand.
Nevada, which hosts nearly 90% of Sphere's property and assets, has proven to be a more stable and business-friendly environment for long-term growth compared to Delaware, where Sphere was previously based for legal purposes. The company has reincorporated in Nevada, reflecting its growing alignment with the state.
Despite the regulatory hurdles and local opposition that led to the shelving of the Sphere project in London, international expansion remains a priority for Sphere Entertainment. The exact timeline for the construction of Sphere Abu Dhabi has yet to be announced, but the company's global expansion continues to move forward.
With Abu Dhabi serving as Sphere's flagship expansion project, the UAE capital city positions itself as a leader in entertainment infrastructure. The partnership between Sphere Entertainment and DCT is set to bring an envelope-pushing venue to the Middle East, further solidifying Abu Dhabi's status as a global hub for innovation and entertainment.
[1] Sphere Entertainment finalizes Abu Dhabi expansion plans with 25-year franchise agreement. (2025, July 26). Retrieved from https://www.arabianbusiness.com/construction/893927-sphere-entertainment-finalizes-abu-dhabi-expansion-plans-with-25-year-franchise-agreement
[2] Sphere Entertainment's Abu Dhabi venture to replicate Las Vegas spectacle. (2025, July 26). Retrieved from https://www.thenationalnews.com/business/property/2025-07-26/sphere-entertainments-abu-dhabi-venture-to-replicate-las-vegas-spectacle
[3] Sphere Entertainment's Abu Dhabi project: What we know so far. (2025, July 26). Retrieved from https://www.khaleejtimes.com/business/property/sphere-entertainments-abu-dhabi-project-what-we-know-so-far
- This 25-year franchise agreement between Sphere Entertainment and Abu Dhabi's Department of Culture and Tourism will not only lead to the construction of Sphere Abu Dhabi but also allows for the development of additional Sphere locations across the Middle East and North Africa.
- The expansion into the Middle East through multiple Sphere venues, including the flagship project in Abu Dhabi, aims to help Sphere Entertainment survive following an operating loss of $108 million for the Las Vegas installation in Q4 2024.
