Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It is about ensuring a better quality of life for everyone, now and for generations to come. This requires meeting four key objectives that are the social progress which recognize the need of everyone; the effective protection of the environment; the prudent use of the natural resources and the maintenance of high and stable levels of economic growth and employments. Informal settlements are areas where groups of housing units have been constructed on land that the occupants have no legal claim to, or occupy illegally; an unplanned settlements and areas where housing is not in compliance with current planning and building regulations (unauthorized housing). In developing countries, cities are experiencing a real demographic explosion. This paper will deal with the problem of the informal settlement phenomenon in Egypt and the means of its upgrading by adopting the concept of sustainable urban development. It applies SWOT-AHP method to analyze stakeholders’ perception of quality of life and their relationship to sustainable development. Results revealed significant agreement between stakeholers’ groups of perception of strengths, threats and opportunities.
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