Sana'a is located in an uplandbasin at an altitude of 2300 meters within a mountainous andsemi-arid region of Yemen. Because of its high altitude, thecity enjoys a moderate climate year around. The main rainyseason is in summer. The nearest port is Hodeidah, roughly250 kilometers away. Bound by mountains and steep slopes tothe east and west, the city has few options but to expandprimarily along its north and south axes within its basin.In September 2005 the Sana'a Local Council convened aworkshop to initiate the city development strategy (CDS)process, in coordination with The World Bank and the ArabUrban Development Institute (AUDI). Funding andorganizational aspects of the CDS were approved in October2006 by the Cities Alliance, and the CDS process waslaunched under the leadership of H.E. the Minister of Stateand Mayor of Sana'a. This publication seeks tosummarize the main outcomes of the studies, discussions, andstrategic planning accomplished during Sana'a CDSprocess. Moreover, it aims to serve as a guide for thecity's local economic development that is presented ina manner that is accessible to a broad audience.