The Arsenal originates from the 16th century when it was a large port warehouse. It is in the vicinity of the town walls and Muraj promenade.

During the course of World War Two the Arsenal sustained considerable damage, and the last restoration was in 2005 when it became a place of culture and entertainment for the people of Zadar. The Arsena space is designed as a closed-type town square where concerts, conferences, private celebrations and the like are held.