Government agencies have made dealing with squatter housing areas in Mecca their utmost priority through the adoption of policies for the comprehensive development of these areas in accordance with their economic components. The development of squatter housing areas in Mecca has prompted the establishment of strategic foundations for tackling this phenomenon, including stimulating investment, urban improvement, and the integration of these areas into the urban context. The widespread growth of slums is one result of the population concentration in the Holy Capital, which is accompanied by an increase in the housing values and the absence of housing alternatives that match the limits of the economic capacity of low-income families. This paper aims to identify the characteristics of the spatial distribution of squatter housing areas in Mecca, so they may respond to the strategic principles proposed by Article [9] of the slum development list in Mecca. The effective treatment of this phenomenon requires intensive efforts based on the alignment of strategic plans for regional development according to the characteristics of each region, thus contributing to the achievement of balance in development and a reduction in the population migration flowing to large urban areas. The study recommends the development of a time frame to address the issue of squatter housing areas in Mecca based on priorities that take into account an analysis of the spatial distribution characteristics before embarking on the development decision; this in turn will contribute to the direction of private sector investments and the rationalization of government spending.