In the aftermath of the recent war, many local authorities in Israel are facing immense economic and social challenges. Among them, the city of Nahariya stands out, not only for its courage and resilience as it was constantly targeted by Hezbollah for more than a year, but for its vision of a prosperous and economically sustainable future.
Located just five kilometers from the Lebanese border, Nahariya stood out by not evacuating - a meaningful decision backed by Mayor Ronen Marelly, who recognized the long-term benefits of maintaining a presence in the city and keeping it going despite the circumstances.
The city had to navigate complex realities: drone threats and missile strikes as well as the absorption of evacuees: “Nahariya became a home for displaced families from northern Israel,” said Marelly, “Around 1,500 families were absorbed into the city, including into the education system. Just like during the COVID-19 crisis, local government played a leading role in managing the situation.” Schools and municipal services remained functional, albeit within strict guidelines from the Home Front Command, which included restrictions on gatherings and outdoor activities.
The war, however, is not Nahariya’s only story. The past few years saw the city already positioning itself as a key economic and social hub for the Galilee, aiming to transform itself into a regional center for employment, healthcare and innovation.
To make this happen, the city’s leadership is focused on creating strong economic anchors, designed to provide high-quality jobs to retain residents and attract talent. The city is leading this venture and has connected a coalition of foundations – the Spirit of the Galilee Foundation, the Russell Berrie Foundation and the Rashi Foundation - each of which is bringing their own strengths to the table.
Municipalities in the periphery face bigger challenges to those in the center. Nathanael Touitou, VP for Municipal Initiatives at the Rashi Foundation, explains that this stems from both historical zoning decisions and internal capabilities. “From the moment local authorities were established, their areas for growth and industry were defined—whether they would have employment and industrial zones or not.”
Itamar Siegelman, Head of Economic Development in Local Municipalities at the Rashi Foundation, adds that peripheral cities face additional barriers. “Beyond historical issues, there are regulatory challenges, like municipalities’ ability to engage with developers or allocate land,” he says. “Many also lack the mindset to embark on economic ventures due to overwhelming bureaucracy. Being far from Israel’s economic center also puts them at a built-in disadvantage, meaning they have to be even more creative.”
Still, Touitou says, municipalities can influence their economic trajectory, but it depends on their leadership and initiative. “Many have been able to overcome structural difficulties and create a good quality of life for their residents. After studying these successes and researching the issues with experts in the field, we developed a unique model for local economic development, the first pilot of which is taking place in Nahariya with its municipality and city-wide leadership.”
With support from the coalition of Foundations, Nahariya is working to turn its potential—its coastline, vibrant shopping areas, and planned Med-Tech center—into reality. “Nahariya is leading this bold venture, forging a powerful partnership that combines expertise in municipal development, economic growth, and community empowerment. This collaboration aims to make the city a model for sustainable progress in Israel’s periphery.”
Amit Granek, Co-Director of the Russell Berrie Foundation's Israel Office adds: “For 15 years, we have been working to strengthen the north of the country, emphasizing the connection between local government, economic development and above all, human capital. This is a long journey aimed at laying infrastructure so that the authorities can provide a better quality of life for residents, strengthen and advance society and the community."
Raya Strauss Ben-Dror, whose family was among the pioneering founders of Nahariya, is deeply invested in its future. She believes advancing education and economic development is key to keeping young people in the Galilee. Her Spirit of the Galilee Foundation, in partnership with the Rashi Foundation and the municipality, initially focused on strengthening STEM education but has recently expanded to informal education, leadership development, and economic growth.
Strauss Ben-Dror sees the economic project as twofold: “On the one hand, the creation of quality employment opportunities that will ensure that young people stay in the city, and on the other hand, strengthening health services,” particularly through a health-focused employment center near the Galilee Medical Center.
"The war has shown us how critical strong municipalities are,” Touitou noted. “Now is the time to invest in the Galilee and the Negev, strengthening these regions in education, economic development, healthcare and so on. We must seize this moment to secure resources and build a thriving future for Israel’s periphery.”
With Purim approaching, the Nahariya community finally starts to feel like life is returning to normal. The city will soon see its annual events and celebrations, which are not just entertainment—they’re a sign of resilience, of people reclaiming their daily lives after months of uncertainty. “The time for the Galilee in now,” Mayor Marelly concluded.
This article was written in collaboration with The Rashi Foundation.