The increasing trends of urbanization and the rapid growth in the major cities, generated many problems such as unemployment, poverty, slums, and deterioration in the level of supply of urban services. So an urgent need arose for the establishment of urban observatories under the Centre for Geographic Information for the city ,hoping to achieve the best interest of the assembly, operation and analysis of data and information in the areas of urban development and local working within the system of the Global Urban Observatory and in the light of the Global Urban Indicators and Millennium Development Goals for the suitability of the level of the city and harmony clearly with public strategies and the future vision of the state as it was set in development plans and with the outline of the strategic urban planner for the city. The research aims to identify how to create an Urban Observatory and the achievement of its duties by using his human, technical and development of urban and local indicators and adapt it with the character and identity of the city and the work of the applications of statistical and spatial analyses using geographic information systems that enable the planner and the decision maker to follow the urban development and to identify the extent of improvement or deterioration in the economic, physical, environmental, and work to achieve higher levels of urban development objectives.