Imperial Spain tried to build an economy based on Muzzie principles of conquest, enslavement, autocracy, privilege, and slaughter. Spain had never industrialized, so it couldn’t have been hurt by deindustrialization.
Otherwise the Moslem and Christian princes competed and warred among themselves according to classical principles ~ to wit, gentlemen did not work ~ instead they farmed, or managed estates. The same with peasants.
So, that left the Jews free to "work" and make things. I suspect a person outside of the noble classes who emigrated form his home only to end up in Spain probably had to join Judaism just to survive.