According to the Iraqi National Housing Strategy (2010), to ensure the continued growth of the Iraqi economy, a flexible and efficient system for the creation of quality housing is important. Because it is considered a major part of the wealth stock of the country, the supply for housing must be built up consistent with industry, infrastructure and community facilities such as hospitals and schools. As the national economy advances, the demand for housing will increase, causing more investment in housing to be undertaken.According to current estimates, there were about 2 million dwellings that will be required in urban areas in Iraq by 2016. This translates into 200,000 houses per year forPage | 6remainder next ten years or about one house every 45 seconds. Historically, Iraq has witnessed a low level of informal settlement development, but in the recent years, informal settlements saw an increase. The main reasons for such phenomena are the wars, subsequent internal displacement of people, and a reduction of development. These informal settlements share the characteristics of being developed outside the law, meaning that residents either do not have rights of using the land, or they have constructed buildings without approval of the government. The main policy of the Iraqi National Housing Strategy towards informal settlements is to implement a case-by-case approach to these settlements.The vital choice is either to upgrade the settlements or to redevelop them. Upgrading consists of in-situ development, in which most inhabitants will remain in their houses and physical improvements will be done to infrastructure such as water supply and sanitation, roads, power and drainage. In this process, land tenure is also legalized. Redevelopment encompasses the removal of most parts or all of the existing buildings and the construction of new ones that are with more productive land uses such as higher densities with commercial. This process usually involves relocating residents and are usually housed in other areas by the people who are in charge of redevelopment through the provision of housing units, serviced plots and financial compensation. Based on those, the Iraqi NHS involves issues and policies that will be further explained as in the Recommendations chapter on page (20).