Major live music performances provide a significant boost not only to artists and audiences but also to the local economy wherever they are held. However, while cities like London, Amsterdam, and New York boast massive venues with capacities of 20,000, Israel’s largest indoor all-purpose venue - the Pais Arena in Jerusalem - holds "only" 11,000 people.
A solution could come from Lod, which is currently issuing a tender, through its municipal economic development company, to build what is being billed as "Israel’s National Arena." The project involves a multi-purpose complex spanning 35 dunams (8.75 acres) that will host events, sports, cultural activities, and commercial facilities.
The development rights cover 195,000 square meters for the arena, a conference center, and a car park. Of this total, 43,000 square meters are for commercial, hotel, and office space. The arena itself will have 20,000 seats and be named "L2," inspired by London’s O2 Arena.
The tender is open to construction firms, consortia, infrastructure funds, investment bodies, and operators from both Israel and abroad. The project is expected to operate on a Public-Private Partnership (PPP) model, combining private and public sector involvement to cover planning, financing, construction, operation, and maintenance. For the developer (or group of developers), this entails a concession for up to 24 years and 11 months, after construction is completed.
The project involves a total investment of at least NIS 1 billion, with projections of hundreds of thousands of annual visitors and annual revenue of NIS 150-200 million for the city and local businesses. But will anyone take on the challenge?
"We wanted to create something distinct."
The Arena is part of the city of Lod’s ambitious development plan, branded "Lodcation." The plan includes construction of roughly 2.7 million square meters of space for offices, commerce, and advanced industry, as well as 515,000 square meters for retail, leisure, and entertainment. This is in addition to tens of thousands of new housing units, urban renewal projects, and investments totaling billions of shekels in transport, education, cultural, and leisure infrastructure. The complex will be built at the city entrance, near the Ganei Aviv railway station and not far from Ben Gurion Airport - a location designed to transform the arena into a national hub for international concerts, sporting events, conferences, and exhibitions. The municipality is also counting on the M1 light rail line, which will include three stations in Lod.
Lod Economic Co. VP business development Nitzan Iluz, one of the project leaders, explains the rationale behind the move: "As part of the two 'umbrella agreements' Lod signed in 2017 and 2025, three new neighborhoods are being built that will increase the city's population from 100,000 to 250,000. Investing solely in residential housing is a money-losing proposition. While you may receive a large influx of funds in the short term, the commercial and office sectors produce high business municipal tax revenue and balance the budget.
"We wanted to create a unique identity and offer an ecosystem distinct to our region. We realized there was a need for a national arena with a 20,000-seat capacity, as demand was outstripping supply. Currently, there is no venue in the country capable of hosting indoor concerts for audiences larger than 11,000. Lod is centrally located and can provide the necessary infrastructure to meet these needs.
"We consulted with companies specializing in large-scale productions in Israel and discovered that the country misses out on 15 to 20 major international shows every year." The Lod Economic Development Co. also points to the loss of "35-40 international events and tournaments that Israel misses out on each year." According to the data they present, the construction of the arena will generate 300-500 permanent jobs at the facility, plus another 1,500-2,500 temporary jobs on every evening an event takes place.
Iluz says the primary use is "Geared toward concerts rather than sports matches, as the latter would consume a larger share of the prime time slots sought for concerts. However, if an entrepreneur like Ofer Yanai were to come along and say, 'I want time slots for Hapoel Tel Aviv games,' we wouldn't dictate terms to him. We are open to anything."
"There are four serious players"
Bids for the tender can be submitted until mid-November. According to Lod Mayor Adv. Yair Revivo, "The National Arena is far more than just a sports or cultural complex. It is a symbol of Lod’s future and its new status in Israel. I call upon leading companies, entrepreneurs, and investors, both domestic and international, to come and take part in a truly exceptional business opportunity. In a few years, a national complex will be built here that will serve as an economic growth engine for the city, the region, and the entire country."
Published by Globes, Israel business news - en.globes.co.il - on September 16, 2026.
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