Urbanization in Egypt has been rapid, leading to significant changes in settlement patterns and social welfare provision. The research employs qualitative data analysis supplemented by secondary sources to explore the dynamics within urban environments and their implications for social welfare systems. A notable finding is that 40% of the population living in informal settlements lacks access to essential government-provided services, highlighting disparities in service provision. The study underscores the need for a more inclusive approach to urban planning and resource allocation to address social welfare gaps effectively within Egyptian cities. Policy recommendations include prioritising investments in infrastructure development and community-based initiatives to enhance service delivery in informal settlements.