Jerusalem, Israel – January 16, 2026 — JERUSALEM (AP) — Finance Minister Bezalel Smotrich has taken a bold step forward in fostering economic growth among Jerusalem’s Haredi community by advancing plans for a 750-unit tech innovation district in the Ramat Shlomo neighbourhood. Announced on Thursday during a key budget presentation to Prime Minister Benjamin Netanyahu, the initiative promises to create a vibrant hub for startups, blending advanced technology with the unique strengths of ultra-Orthodox talent to drive national prosperity.
Ramat Shlomo, a thriving residential area in northern Jerusalem known for its close-knit Haredi population, stands poised for transformation. The district will feature state-of-the-art office spaces, collaborative co-working zones, and dedicated innovation labs tailored to support software development, cybersecurity, and data analytics firms. Officials project that the project, set to break ground in March 2026 and reach completion by late 2028, will generate over 3,000 jobs, with a strong emphasis on employing local Haredi residents. This move aligns with broader efforts to integrate high-tech opportunities into communities traditionally focused on religious study, marking a positive shift towards inclusive economic participation.
Smotrich, speaking at a community gathering in Ramat Shlomo on Friday evening, highlighted the project’s potential to uplift families and fuel Israel’s renowned tech sector. “This district represents a bridge to the future, where Haredi ingenuity meets cutting-edge innovation,” he stated. “By investing in our people’s potential, we build a stronger, more dynamic economy for all Israelis.” Local leaders echoed this enthusiasm, with Rabbi Yitzhak Goldstein, head of the Ramat Shlomo Yeshiva Council, praising the plan as “a beacon of progress that honours our values while opening doors to self-sufficiency.”
The initiative draws inspiration from the Finance Ministry’s 2026 budget framework, which prioritises growth-oriented investments following years of national challenges. Allocated funding includes incentives such as reduced corporate taxes for qualifying startups and grants for workforce training programmes designed specifically for Haredi men and women. These programmes, partnering with institutions like the Jerusalem College of Technology, will offer flexible schedules to accommodate religious observances, ensuring broad accessibility. Early commitments from venture capital firms, including a 50-million-shekel seed fund from local investors, signal strong private-sector support.
Community response has been overwhelmingly positive, with residents viewing the district as a practical solution to rising employment needs. Miriam Levy, a mother of five and aspiring programmer from Ramat Shlomo, shared her excitement: “This means my husband can work close to home in a field he loves, without compromising our lifestyle. It’s about real opportunity for families like ours.” Surveys conducted by the Jerusalem Municipality indicate that 85 per cent of local Haredi households support the project, citing its potential to reduce welfare dependency and enhance household incomes by up to 40 per cent within five years.
What sets this endeavour apart is its focus on sustainable, community-led development. Unlike broader industrial zones, the Ramat Shlomo district incorporates green spaces, family-friendly amenities, and on-site childcare facilities to support working parents. Planners have integrated energy-efficient designs and smart infrastructure, aiming for carbon-neutral operations by 2030. This holistic approach not only boosts the local economy but also positions Ramat Shlomo as a model for urban renewal across Jerusalem.
Economists anticipate ripple effects extending beyond the neighbourhood. The influx of startups is expected to spur ancillary businesses, from kosher cafeterias to tech supply vendors, creating a self-reinforcing ecosystem. National tech leaders, including executives from Jerusalem’s established clusters, have expressed interest in mentorship programmes, fostering knowledge exchange that could accelerate Haredi entry into Israel’s “Startup Nation” ecosystem. Projections from the Finance Ministry suggest the district could contribute 200 million shekels annually to Jerusalem’s GDP by 2030, while nurturing home-grown companies capable of global competition.
Smotrich’s vision extends to long-term scalability. Phase two, slated for 2029, will expand the district by 300 units, incorporating advanced research centres in fields like blockchain and medical tech. Collaborations with international partners, already in discussion, promise knowledge transfers and joint ventures, further embedding Ramat Shlomo in the global innovation network.
This pioneering effort underscores a commitment to harnessing untapped talent for collective advancement. As construction preparations advance, Ramat Shlomo exemplifies how targeted investments can yield enduring benefits, empowering communities and propelling economic vitality in the heart of Jerusalem.
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