The Israel Export Development Corporation (IEDC) was founded in 1992 by David Yerushalmi, a former California real estate developer and lawyer who emigrated to Israel, with co-founder Larry Silverstein and backing from 26 prominent Jewish-American businessmen including Robert Tishman, Larry Tisch, Sy Syms, and Larry Silverstein. Based in Jerusalem, the organization aimed to promote direct investment in Israel through the development of free-export processing zones (FEPZs), offering tax exemptions on tariffs, personal and corporate income taxes, and regulatory relief to attract high-tech industries and create jobs. IEDC proposed Israel's first such zone near Beersheba in the Negev desert, covering 500 acres, guaranteeing at least $750 million in investment, pre-leasing 50% of the space, and planning infrastructure such as roads, utilities, and services. Despite opposition from labor groups and the media, the Knesset approved the FEPZ legislation on June 20, 1994. The organization also pursued international projects through Yerushalmi's Gateway Ventures, developing similar zones in Russia, Hungary, Dubai, and other locations, with offices in Israel and Washington, D.C.

IEDC was closely affiliated with the Institute for Advanced Strategic and Political Studies (IASPS), described as an offshoot of IASPS, sharing funders, staff such as general counsel David Yerushalmi, and leadership links through Robert Loewenberg, who headed IASPS and was involved with IEDC. The corporation was embroiled in controversies, including a 1995–1997 FBI investigation into an alleged $10 million bribery scheme involving arms dealer Sarkis Soghanalian. Associates of IEDC, including Howard Ash and Morty Bennett, were implicated in attempting to secure payments to influence then-House Speaker Newt Gingrich to lift the Iraq arms embargo. Marianne Gingrich, Newt Gingrich’s wife and hired as IEDC’s Vice President of Marketing in 1995 following her meeting with Loewenberg, traveled to Paris on IEDC expenses to solicit investment from Soghanalian, though no charges were filed. Additionally, IEDC’s name was linked to a failed penny stock scheme involving Triangle Technology, which resulted in investor losses. The corporation reportedly ceased operations after changes to Israeli tax laws reduced the attractiveness of the free-export processing zones.