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Abstract There are few studies that present globalization in its real image and its relation to urbanization and informality while a complete understanding of these relations will in turn reflect the future image of planning in this century. This research aims at providing an explanation for the effect of Globalization on the informal areas. This explanation is believed to be important for the effectiveness of planning efforts that aim at upgrading informal areas and acting for welfare of its inhabitants. This study argues that economic duality in developing countries whose cities integrate in the global economy are bound to experience expansion of informal urban settlements. The research attempts to use qualitative and quantitative methods of inquiry. First, it tries to contemplate causes of expansion of the informal sector and how these causes link to global economy, second, it attempts to inspect the relationship between Globalization and the informal sector and tries to provide empirical evidence for the conceptual model by using statistical analysis of variables that measure both Globalization and Informality, third, policy recommendations and planning implications presented in this thesis provide policy-makers, city planners and scholars with ideas for understanding the new changes in the city according to the relationship between Globalization and informal settlements |