Sphere Entertainment Finalizes Abu Dhabi Expansion Plans

Sphere Entertainment has finalized a landmark agreement to bring its iconic venue concept to the Middle East as part of its plans to grow its footprint beyond Las Vegas. The deal, finalized July 25 between Sphere Entertainment Group and Abu Dhabi’s Department of Culture and Tourism (DCT), envisions the construction and long-term operation of Sphere Abu Dhabi.

DCT Agreed to Shoulder Most of the Financial Cost

The planned venue will match the size and spectacle of the original 20,000-seat structure that premiered in Las Vegas in 2023. The agreement, revealed in a recent SEC filing, also 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. 

The partnership represents a bold step toward Sphere’s evolution into a franchise business model where regional partners invest and operate local locations by licensing Sphere’s immersive technology, content, and brand. DCT will cover the entire cost of construction and pay royalties on ticketed experiences, intellectual property use, and pre-opening support services.

DCT has agreed to pay Sphere Entertainment Group a franchise initiation fee and royalties for the use of Sphere Entertainment Group’s intellectual property.

Sphere Entertainment statement

For Sphere Entertainment, the move is about more than just expansion. It is a survival strategy. Despite multiple high-profile performances and positive reception by Vegas visitors, the $2.3 billion Las Vegas installation recorded an operating loss of $108 million in Q4 2024. CEO James Dolan previously noted that replicating the Sphere model in new markets was vital for long-term profitability.

Sphere Remains Set on Further Expansion

This newest 25-year agreement allows for two possible 10-year extensions and provides DCT with all the tools to recreate the Sphere experience faithfully. This expansion follows the shelving of Sphere’s London project after regulatory hurdles and opposition from locals. However, international expansion remains on the cards, likely in the form of smaller, 5,000-capacity venues offering greater flexibility.

Sphere Entertainment Co. recently reincorporated in Nevada, reflecting its growing alignment with the state. Delaware, once its home base for legal purposes, was determined to have a negligible strategic advantage. Meanwhile, Nevada hosts nearly 90% of Sphere’s property and assets, offering a more stable and business-friendly environment for long-term growth. 

As Abu Dhabi becomes Sphere’s flagship expansion project, the partnership will see the UAE capital city remain on the cutting edge of entertainment infrastructure, where live performance meets cinema, art, and technology in one envelope-pushing venue. While construction timelines have yet to be announced, it is clear that Sphere’s global expansion is only just beginning.