Alec unit awarded contract to build Sphere Abu Dhabi

A subsidiary of Dubai government-owned construction company Alec Holdings has won a $1.7 billion contract to build the Sphere Abu Dhabi entertainment venue.

The award was issued by the Department of Culture and Tourism Abu Dhabi (DCT Abu Dhabi) to Alec Engineering and Contracting, the company said in a statement to the Dubai Financial Market on Friday.

The project, jointly developed by DCT Abu Dhabi and Sphere Entertainment, will be the first Sphere venue outside the US, with an anticipated opening in the third quarter of 2029.

The venue will mirror the $2.5 billion, 111-metre tall Las Vegas Sphere – the LED-covered arena known for immersive concerts – and have a capacity of up to 20,000.

Sean McQue, managing director at Alec Construction, said that the Sphere Abu Dhabi demands precision at every level, from design integration and supply-chain orchestration to on-site execution and quality assurance.

DCT Abu Dhabi will fund construction and pay Sphere Entertainment a franchise fee for access to its designs, technology and intellectual property, as previously reported by AGBI. Sphere will also receive annual fees covering content, operations and advisory services.

Alec’s net profit doubled year on year to AED230 million ($62 million) in the first quarter of 2026, supported by an 87 percent increase in revenues to AED4.6 billion.

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Founded in 1999, Alec became a subsidiary of the Investment Corporation of Dubai (ICD), the principal investment arm of the Dubai government, in 2017. Its flagship projects include One Za’abeel, a mixed-use development in Dubai, SeaWorld Abu Dhabi, the world’s largest indoor marine theme park, and Dubai Hills Mall.

Its shares closed at AED1.35 on Friday, down nearly 12 percent so far this year.

Yas Island is already home to a Ferrari World, SeaWorld and other major amusement parks, as well as the circuit for the annual Formula One Grand Prix.

In May 2025, the Walt Disney Company announced plans to partner with Abu Dhabi’s leisure-focused developer Miral to build a theme park on the island.