Vegas-style Sphere will light up the skies of Abu Dhabi

Yacine Ait Kaci using generative AI

Abu Dhabi and New York’s MSG Entertainment are set to jointly launch the world’s second Sphere venue in the UAE, following its runaway success in Las Vegas, US. 

The 111 metre-tall spherical immersive entertainment structure has already garnered global attention and hosted the likes of rock legends U2 and immersive artist Es Devlin.

While a proposed Sphere project in London was written off due to concerns over light pollution and environmental impact, Abu Dhabi has taken its chance on globe-shaped entertainment.

In this partnership, the Department of Culture and Tourism Abu Dhabi will finance the venue’s build and pay a franchise fee to Sphere Entertainment for venue development, construction and pre-opening services.

The aim of the Abu Dhabi-based venue is to blend advanced technology with storytelling, creating memorable experiences for visitors.

The Abu Dhabi Sphere will be able to accommodate up to 20,000 attendees, surpassing the 18,000 capacity of its Las Vegas counterpart. Unlike traditional immersive experiences that are often limited to small audiences, the Sphere’s vast scale allows thousands to experience the show simultaneously, both inside and out. 

The design focuses on full immersion, with dynamic 360-degree visuals that surround audiences.

The Las Vegas Sphere, built at a cost of $2.3 billion, represents a bold financial undertaking that relies on diverse, strong revenue streams. Since its opening, it has generated impressive returns from two main categories.

“Immersive experiences” are the first major revenue contributor. 

Darren Aronofsky’s Postcard from Earth, a 50-minute experience, generated $75 million in the second quarter of 2024 from 208 performances. With ticket prices ranging from $49 to $249, the show averaged more than $1 million in revenue per day.

Concerts and events bring in massive ticket sales for high-profile performances, including U2’s highly successful residency. With an average ticket price of $369, U2 grossed $245 million from only 40 shows, making it the fourth-highest-grossing residency ever despite the limited number of performances, according to Trapial.

Operating costs for Sphere venues are substantial, driven by high-profile talent and elevated administrative expenses, such as employment and professional fees. After its first year, the Sphere closes with a $500 million operating losses, despite the financial success of the Las Vegas venue, bolstered by notable bands with loyal fan bases willing to pay premium prices, including The Eagles.

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Looking ahead, the company sees potential in AI-driven efficiencies that can reduce production costs, enhancing profitability.

Sponsorship revenue is another critical and high-margin component. Advertising on the “exosphere” – the Sphere’s prominent outer layer – starts at $450,000 per day, with higher rates during peak tourism seasons. 

These sponsorships reach millions of visitors in Las Vegas and many more through viral social media campaigns. As one of the most profitable revenue streams for the Sphere, sponsorship contributes significantly to its financial success and appeal to top-tier advertisers.

While an opening date for the Abu Dhabi Sphere has yet to be announced, this expansion aligns with the UAE capital’s vision of pioneering progressive cultural experiences in the region. It also reflects Sphere Entertainment’s need to establish a global network to make this ambitious project financially sustainable. 

Adeline Pilon is founder of Happening Technologies, co-founder of the Elyx Foundation and was named in 2023 as one of the top 100 cultural influencers in France