Ferrari, Mercedes and Audi race car models will zoom along the capital's streets together with Israeli models constructed by Ben-Gurion University's race car team Thursday and Friday.
"Jerusalem joins other leading cities in the world which hold motorsports events attracting hundreds of thousands of spectators who contribute greatly to the city's economy, tourism and world image," The Jerusalem Post quoted Mayor Nir Barkat as saying in announcing the project in April.
"This is a massive production, the likes of which Israel has never seen. I invite all Israelis to come and enjoy an extraordinary experience -- an example of the city continuously improving sports and culture events," Barkat told reporters during the weekend.
Retired motorcycle racer Massimiliano Biaggi, the winner of the 2012 World Superbike Championship told reporters he is looking forward to the event.
"It is great to have a chance to drive a Formula 1 car on the streets of the city that is as fascinating and full of history as Jerusalem," said Giancario Fisichella, who will drive a Ferrari around the circuit.
The cost of the event is estimated at $4.14 million, The Times of Israel said. Similar events have taken place in New York, Moscow, Sao Paulo and Macao.