The Jerusalem economy has been in the doldrums for quite sometime. However, finally the capital city of the Holy Land may be showing signs of an upturn.

Dating back to the last war with Hamas in Gaza in the summer of 2014, the Israeli economy took a hit. This was specifically so for the small enterprise sector, which is predominant in Jerusalem. Anecdotal evidence from my business mentoring clientele seemed to bear this out.

One headline in today’s local paper stresses a survey from Dun and Bradstreet. 8% of businesses in the Jerusalem region are in danger of closure. That downturn could impact on employment and then have further knock on effects.

However, there is a flipside to this. Maybe times are already changing. I have previously mentioned the success of JVP, the Jerusalem-based venture fund that has expanded its financial capacity this year for new projects. Other indications include: –

• In contrast to the early winter months, reports from my clients now point to a change for the better in their sales since the beginning of February 2016.
• The monitoring company RIS has noted a significant pick up in sales at the major shopping malls, ranging between 16% (Malha) to 25% (Ramot).
• The Atarot industrial zone, where Jewish and Arab companies mix openly, now has plans to free up a further 30 dunams for development.
• And if you want to get into the high-tech area of Har Hotzvim in the north of the city, space is not too easy to find. Hence there is much new building going on in the area.

It is impossible to be sure. However, it is clear that something is happening in the Jerusalem economy for all sectors. It is now time for central government to take responsibility to ensure that infrastructure is improved further and thus the upturn can continue.