This paper aims to develop a number of guidelines to improve the economics of productive families as an approach to renewing urban deteriorating neighborhoods, by applying them to the Al-Oud neighborhood in the city of Riyadh. The economic factor and supporting the economics of the population are overlooked in many urban renewal projects, which contributes to the lack of success and sustainability of these projects. Therefore, the problem of the research lies in the weakness of the regulatory frameworks in urban renewal projects that promote productive family projects in urban deteriorating neighborhoods. The paper relied on a theoretical and descriptive approach, and used field interview tools with five productive families in the Al-Oud neighborhood in Riyadh. The paper analyzed the most prominent challenges facing productive family projects by applying the factors to improve productive family projects, which are: financing, providing resources, training, marketing, and guidance. The paper found several challenges facing productive family projects, including difficulty in accessing available resources, lack of funding sources, high prices of resources for production, lack of personal financial resources, lack of training programs, weak marketing skills, and lack of specialized expertise and competencies. Finally, the study recommended the need to strengthen cooperation between the public and private sectors to provide resources and support to productive families, and to provide special financing programs and vocational and marketing training to increase their production capacity in order to improve the economies of productive families and upgrade urban deteriorating neighborhoods.