As Jerusalem races to redefine its economic identity, it is people like Ayala Londner who lead its transformation. A lawyer by training and a policy strategist by passion, Londner now heads business and industrial development at the Jerusalem Development Authority (JDA), a statutory organization committed to ensuring the city’s long-term economic health in accordance with the Jerusalem Municipality and Mayor Moshe Lion’s policies.
“Originally, I was trained as a lawyer,” Londner says. “I interned in the High Court of Justice division of the civil service, where I saw firsthand how policy tools are used to create broad public impact.” That early experience sparked her dedication to public economic policy, how governments can support free-market dynamics, step in to fill gaps, and act as catalysts for sustainable change.
She explains the concept with a practical example: “Let’s say there’s no private company running a start-up accelerator in Jerusalem, even though in other cities corporations recognize the value of nurturing innovation. If I can find a company willing to collaborate with the municipality or the JDA to launch the initiative, then we’ve created something new.
Once it’s successful, the market adopts it, and it can sustain itself. That’s where public policy creates value, and then steps back.” This philosophy of enabling rather than replacing the market drives much of Londner’s work. Before joining the JDA, she served as a legislative adviser in the Knesset, and later as an adviser to the former finance minister.
“I bring a 360-degree view of public policy,” she says. “From high-level strategy to hands-on implementation, I am always focused on my three passions: economic development, public policy, and Jerusalem.” But Jerusalem isn’t just another city.
It faces unique demographic, geographic, and political challenges. “There’s a significant leakage from Jerusalem – we’re losing young people,” she says. “We’re working hard to change that.” Over the past few decades, Jerusalem’s hi-tech industry has expanded from a handful of international companies to a vibrant innovation hub.
Tech parks like Har Hotzvim and Gav-Yam house leading firms, while city initiatives such as JNEXT and the Innovation District encourage a dynamic ecosystem. With rapid growth in biotech and AI, the city continues to work on bringing together diverse populations and making high-tech a central part of its economy.
A mission with historical roots
The JDA was established in 1988 through legislation initiated by mayor Teddy Kollek. Its mission was to develop Jerusalem’s economic infrastructure, regardless of shifting political climates. Today, the JDA operates based on multi-year government-approved plans designed to help the capital address its complex challenges.
Its activities cover four main areas: tourism; physical planning and implementation (such as the Railway Park and the Azrieli College); strategic projects like Hansen House; and business and industrial development. “Think of it as the city doing the groundwork and us helping propel the vision forward,” Londner explains.
The JDA segments its efforts into short- and long-term strategies. Immediate support includes three grants: an entry grant for companies establishing in Jerusalem; a growth grant that offers tens to hundreds of thousand shekels per new R&D employee over a two-year period; and a strategic company grant, which can reach into the millions and targets attracting international firms.
“We’re essentially saying: ‘Take the risk, and we’ll help you succeed,’” Londner says. When asked what sets Jerusalem’s business environment apart, Londner doesn’t provide a direct comparison. Instead, she emphasizes a key local strength: “We have what I call ‘soul players,’ people deeply dedicated to improving life here, purely out of goodwill. That’s not a one-time thing; it’s a cultural trait.”
Jerusalem, she observes, is a cosmopolitan city, being Israel’s largest metropolis with a diverse population of secular Jews, the Religious Zionist community, haredim, and Arabs. “You meet people very different from yourself, every day, everywhere, including at work. That makes every professional space a shared effort toward collective success,” she says. “The tech community, especially, is motivated by the idea of inclusive growth.”
A three-pronged vision for retaining talent
Retaining young residents is a significant challenge for the city, but Londner believes the core issue isn’t motivation – it’s infrastructure. “Most of the people I know would stay if they could. But there wasn’t enough housing, and rental prices soared. There weren’t any jobs in their fields.”
To address this, the municipality and the JDA are implementing a three-part strategy: expanding the light rail to connect neighborhoods and nearby areas; building high-rise housing along these routes to support growth; and creating new employment zones with meaningful, high-quality jobs. “Recently, we’ve issued more than 7,500 building permits annually, up from 2,500 in the past,” she says.
A current example is the excavation of the underground route for the Tel Aviv–Jerusalem intercity rail, which will include a new station in the First Station complex. “This essentially establishes another central station in Jerusalem,” she says.
“Just imagine, residents of the area won’t need to pass through the city entrance anymore. They’ll be able to board a train to Tel Aviv right from the First Station. It’s a real revolution. “Construction [on the light rail Green Line is already underway and progressing rapidly. By January 2026, it will be operational. In policy terms, that’s tomorrow morning.”
From high school to hi-tech
Londner views Jerusalem’s transformation as a supply chain that begins with education. “We see value in nurturing technological excellence from high school,” she says. “There’s a strong link between locals who grow up here and want to stay, and we aim to support that through targeted programs.”
These boutique educational initiatives promote STEM learning across secular, religious, haredi, and Arab communities. “We especially focus on girls and underrepresented groups,” she adds. “Data shows that early exposure boosts later participation in the tech sector.”
The city benefits from a unique cluster of research institutions such as the Hebrew University of Jerusalem, Shaare Zedek and Hadassah medical centers, and various colleges. The JDA has helped establish innovation centers in nearly all of them.
“Students often start with a concept and leave with a start-up, becoming eligible for our grants,” Londner states. “We’re consistently strengthening the link between academia and industry; it’s strategic.” She highlights Mobileye, founded in Jerusalem by Amnon Shashua, as a success story. “It demonstrates how industrial growth and academic research are closely connected, which is a significant achievement.”
A key focus for the JDA is inclusive growth. “We identify untapped potential within haredi and Arab populations,” Londner notes, “and have created tailored initiatives for each group.” For example, East Tech is a hi-tech hub in east Jerusalem, offering local entrepreneurs co-working space, mentorship, investor connections, and industry events, all at a token cost.
“It’s not just about providing beautiful office space,” she emphasizes, “but about creating pathways to opportunity.” The goal is to foster diverse and sustainable employment that reflects the city’s complex social fabric.
Looking ahead: The gateway to Jerusalem
Londner’s eyes light up when she mentions one of the city’s most ambitious projects: the Jerusalem Gateway District. “The first tower is already up,” she says. “We’re adding 1.2 million square meters of employment space and mixed-use development.”
One of the main announcements on Jerusalem Day this year was that the district’s primary building, located on public land, will house a new defense research innovation center under the auspices of the Defense Ministry. “That’s a major strategic win,” Londner says. Recently, defense tech giant Rafael opened a new building in the Har Hotzvim Hi-Tech Park, another sign of the city’s growing economic influence.
Londner’s vision for Jerusalem is realistic, methodical, and hopeful. “I’m not trying to convince anyone to fall in love with Jerusalem,” she says. “I’m speaking to the people who already love it and just need the conditions to stay.”
With thousands of new housing units, expanded transportation infrastructure, grant incentives, and a growing tech ecosystem, those conditions are finally starting to take shape.
This article was written in collaboration with the Jerusalem Development Authority.