Yemen is one of the third world countries, which suffers from rapidly increasing urbanization and this problem is getting more serious. Hence most of the people lack adequate shelter and services. The population of Yemen has been steadily increasing in the early seventies, due to the following reasons: natural population growth and the internal migration from countryside to the urban areas and also due to the economic, social, legislative and political reasons. All these have led to an imbalance between the increasing demand and the limited availability of the housing facilities in general and for low income groups in particular. This study aims to identify and analyses the policy of sites and services as project in Sana'a. It is a good example that represents the status of this type of policy (sites and services) in Sawad Saawan. This study also clarifies the suitability of the needs and ability of low-income groups to correct the directions of their attempts either by what has been implemented or the factors to be taken into account to succeed in the future. The first part of the study has employed a theoretical analytical approach to understand the directions, which make the suitable houses available to the low-income groups in Yemen; the second part has carried out field study in the target city Saawan as a project instance of the sites and services policy. The study has concluded that this project has faced many difficulties on its way of success due to the following reasons: (i) inability of target groups to have houses that match their financial ability and meet their basic living needs and (ii) the negative impact created by the actual implementation of the sites and services project due to the difference between the practical field and the theoretical idea. This study has suggested and recommended the means to enhance the development of the housing sector and housing policies in Yemen
