Sphere Entertainment declared that it has signed an agreement with the Department of Culture and Tourism (DCT) of Abu Dhabi to construct a second Sphere in the UAE capital.

The arrangement is a pre-opening services agreement and collaborative development and collaboration agreement with DCT for the building, development, and operation of Sphere Abu Dhabi.

Put another way, it's a franchise agreement, which benefits Sphere Entertainment because the financially troubled business won't have to construct or maintain the new location.

"The exclusive right to build and operate a new Sphere venue and at least 10 years to build more venues in the Middle East and North Africa" are granted to the United Arab Emirates by the deal.  All of the company's technology, supplementary content, and intellectual property may also be used by the UAE.

A one-time franchise initiation fee and an annual intellectual property royalty calculated as a percentage of Sphere Abu Dhabi's total revenue for the year, excluding ticket sales for The Sphere Experience material that Sphere Entertainment Group has licensed to DCT, will be given to Sphere in exchange.

The franchise agreement will be in effect for 25 years after Sphere Abu Dhabi opens, and the DCT may choose to extend it for an additional 10 years.

Sphere Entertainment and DCT anticipate signing an operational services contract before Sphere Abu Dhabi opens.

Although Sphere Entertainment stated last year that it would "echo the scale" of its 18,600-seat Las Vegas facility, which debuted with a U2 residency in September 2023, there are few details available about Sphere Abu Dhabi.

The city's location has not yet been revealed.

The city of London rejected Sphere Entertainment's plan to construct a second Sphere there in January 2024. Sadiq Khan, the mayor of London, described the proposed 17,500-seat facility as a "detriment to human health" that would injure "hundreds" of people in the neighborhood.