The Economic Life In Jerusalem

The closure of East Jerusalem resulted in the break down of social and economic fabrics. The closure of East Jerusalem over the past ten years, which intensified considerably since the start of the second Intifada has greatly affected the eastern part of the city economically, socially, as well as culturally. In many ways, the closure did cut East Jerusalem from the rest of the West Bank. It resulted in the transfer of many Palestinian institutions out of East Jerusalem in the early nineties. As Jerusalem used to be the Palestinian center for economic, social, and cultural activities, to a large extent this has been changed over the years as activities moved beyond the city borders.

The offices of the Jerusalem Arab Chamber of Commerce and Industry were closed by and Order from The Israeli Minister of Interior and Security, on the 10th of August 2001. Currently the Chamber is performing its duties from a temporary office in the outskirts of Jerusalem borders.

Jerusalem received 2 million visitors in 1999.

The tourism sector is a potentially significant growth industry. Jerusalem economy is dependent on tourism in general. Trade, services, and industry come second.

The basic tourist industry has generated a significant number of economical activities such as hotels, tourist and travel offices, tourist transport companies, restaurants and coffee shops, tourist guiding, oriental souvenirs and handcrafts stores and other businesses connected to oriental gifts. Many of the companies operating in these industries depend on the main economy in the city.

Trade prospers in Jerusalem, being the spiritual capital for the Palestinians. It is usually visited by the nearby villagers for marketing purposes, spending their time in the Old City, especially on Fridays. Throughout the holy month of Ramadan the city is crowded with Muslims coming to pray in the Al-Aksa Mosque. So is the city on Christmas, Easter and other Christian or Jewish Festivals.


The industry in Jerusalem and in its suburbs forms another generating and economical income. However, the average participation of industry in the economy of Jerusalem is still small. The main industries in the city are the textile and clothing industry as well as the leather wear and shoes industry. A number of factories also make an important contribution to the economy, among them the two biggest factories in Palestine for food industry, the main cigarette factory, the stone cutting factories on the outskirts of the city and at the ceramic and pottery industry.