This report sheds light on the urban divisions and development challenges faced by the countries of the ESCWA region. Specifically, it addresses the spatial dimension of the urban development vis-à-vis strategies aimed at inclusive urbanization, social equity and economic balance. With reference to selected case studies and examples, it presents an array of spatial development interventions taking place in the region; and highlights the ways they respond to urban fragmentation and inequalities, and their limitations. Finally, it outlines a framework for action aimed at institutionalizing inclusive development within urban development policy formulation and implementation. This report is the final output of a study that ESCWA launched in mid-2010 and that involved the Expert Group Meeting on Bridging the Urban Divide in the ESCWA Region: Towards Inclusive Cities (Beirut, 25-26 November 2010). The papers and case studies presented by participants to the Meeting and the issues and recommendations they raised in the course of their discussions provided a good base material in the production of this report.