Bezalel opened on Ethiopia Street in Jerusalem in 1906. The school's stated goals were "to train the people of Jerusalem in crafts, develop original Jewish art and support Jewish artists, and to find visual expression for the much yearned-for national and spiritual independence that seeks to create a synthesis between European artistic traditions and the Jewish design traditions of the East and West, and to integrate it with the local culture of the Land of Israel.” In 1908, the school moved to a permanent home on what became Shmuel Hanagid Street, which allowed more departments to be opened and the scope of activities expanded.
Of the three buildings Schatz purchased from a wealthy Arab. one was his personal residence and the other two housed the art school and a national art museum. The school was established based on the Russian concept of an arts and crafts school and workshop. Bezalel's motto was "Art is the bud, craft is the fruit."The school offered instruction in painting and sculpture alongside crafts such as carpet making, metalworking and woodcarving.This school was the source of many handmade carpets woven by immigrants which are so sought after today .
In the wake of financial difficulties, the school closed in 1929 and some of weavers joined another workshop in Marbediah in Jerusalem which their carpets are also sought after .Schatz died while fundraising on behalf of the school in the United States. His body was brought back to Jerusalem and buried on the Mount of Olives. Bezalel reopened in 1935 as the New Bezalel School for Arts and Crafts.
