Heart of the World
Jerusalem
Heart of the World
There is a magical quality about the Old City of Jerusalem that does not exist anywhere else in the world. Perhaps it is due to the glorious history of the towering stonewalls and ancient buildings, or the sacred atmosphere that surrounds the holy sites of Jewish, Christian, and Moslem religions. The enchanting quality of Jerusalem may also come from the colorful markets and narrow alleyways, or from the city’s dynamic history - a history woven with war and peace, love and hate, destruction and resurrection
Strategic
Location
Strategic
Economic Position
Emerging Despite Difficulties
Economic Position
- East Jerusalem private sector is the least developed within the area, with the lack of proper strategies, business environment and investment, the city is struggling to develop its future.
- Respectively, the lack of private sector investment contributes proportionally to the lack of development of the city various sectors as well as that of its employment rate.
- Jerusalem's economy is based on service industries, including government, education, religion, and tourism, with manufacturing playing a relatively small role.
- Jerusalem Governorate Population is estimated at 375,000 with an annual growth rate of 3.8%. The Majority are under the age of 24 with a percentage of 68% and a major declining indicator arouse to record 65 % of the population under the line of poverty.
- Annual work force is estimated to be at 10,000 employees of which 20% are collage graduates, 80 % are skilled and non-skilled labor.
- The average daily wage in the West Bank at is 16.4 USD while the average daily wage in East Jerusalem at the same time was 27.2 USD comparing with the average daily wage in Israel is 56.8 USD
- Preservation of the city's historic character has also prevented the establishment of large-scale industry in the city and the surrounding area.
- The tourism sector contributes up to 60 % of Jerusalem’s GDP and 30% of the Country’s GNP.
- Currently East Jerusalem have an approximate number of 2659 private sector establishment. The Agenda of establishments are divided between Tourism, Real Estate, Services (Health and Education) and Trade establishments.
Jerusalem's Economy is based on 4 main sectors:
- Jerusalem is the most-visited city with 3.5 million tourist arrivals annually due to its strategic location next to different hot attraction spots in the region
- Tourism sector is one of the most important sources of income in the city of Jerusalem.
- The Tourism Sector Contributes up to 60 % of the City’s GDP and up to 30% of the Country’s GNP.
- Studies showed that Jerusalem is in need of new 8000 rooms in addition of improving and uplifting existing ones to handle the enormous capacity of tourists that inhabit Jerusalem for certain periods around the year due to seasonal ties.
- It is a holy city to the three major religions: Islam, Christianity and Judaism.
- Hosts a myriad of historical, archaeological, religious and sundry other attractions.
- One of the oldest cities in the world, and largest city of the country
- The sector is expected to grow up to 8% in 2012 reaching a number of 4 Million guests staying at local hotels annually.
The graph indicate that Jerusalem attracts the big bulk of tourists during the high season in comparison with the main hotspots in the country.
- Investing in the renovation and uplifting of existing hotels (requires less permissions).
- Investing in the development of new Hotels, Restaurant and Facilities.
- Local banks providing access to finance through a recognized professional mechanism.
- Local authorities do offer incentives and subsidies for tourism facilities such as hotels.
- Jerusalem suffers from a severe shortage of population due to the lack of adequate housing for thousands of Jerusalemites.
- Studies indicate that the City of Jerusalem will need 40,000 new housing units by the end of 2014.
- The Real Estate sector is the most important sector to utilize in terms of investments and development due the following factors :
- People travel from all over the world to Jerusalem to visit the religious and historical sites.
- The presence of many individuals in the city of Jerusalem for long periods within the international organizations and diplomatic missions.
- The population growth rate exceeded 3% per year.
- An environment that is clear and stable legally and regulatory.
The graph indicate that the growth in demand is exceeding the supply percentage every 5 years which will lead to a housing problem by the end of 2015.
- The positive aspects of diversifying an investment portfolio in terms of asset allocation are well documented. Real estate returns have relatively low correlations with other asset classes.
- Increase in real estate investment through the existing areas for housing in the city.
- Local banks providing access to finance through a recognized professional process.
- There are real tough challenges that are preventing the sector form development in terms of supply chain and expertise.
- Most of the companies are SMEs and are engaged in retail contracts and network brokerage services .
- The reason why the sector is neglected, is the lack of investment at a certain point in addition of the lack of awareness about this booming industry among the society.
- The absence of an organized infrastructure to serve new IT organizations and entities.
- Development of reciprocal relationship between IT Companies both locally and internationally to cooperate on establishing common ICT driven projects.
- Promote East Jerusalem ICT sector as a business ready environment with high potential for growth to local, regional and international investors.
- Establishment of market driven training and capacity building programs both for market entry professionals as well as entrepreneurs
- 55% of the Population of Jerusalem is under the age of 18 , with a high percentage of an annual growth rate.
- Studies based on current indicators showed that the City will suffer a shortage of 120 schools by the end of 2017.
- A current shortage is recording the need of 1880 classroom urgently.
- The absence of proper educational facilities in existing schools such as libraries , experiment labs , activity halls and sports fields.
- 70% of East Jerusalem students attend private schools which showcase an opportunity for private sector investment.
- Local authorities do offer specific incentives and subsidies for local schools
