The study examines Dar es Salaam's potential as a focal point for structural transformation, highlighting its emergence as a significant economic hub. Through a mixed-methods approach, the research investigates how urban development is shaped by institutional, economic, political, and spatial factors. Findings indicate a shift toward a service-oriented economy, although the informal sector remains dominant, characterized by low productivity. Key challenges include infrastructure gaps, skills shortages, limited entrepreneurial spirit, and bureaucratic inefficiencies. The political settlement, marked by the long-standing dominance of the ruling party, has both enabled and constrained transformation. To unlock Dar es Salaam's potential, a strategic mix of policies, including infrastructure investment, skills development, regulatory simplification, and support for the informal economy, is essential. Addressing these issues will enable the city to leverage its economic strengths and achieve sustainable urban development. By fostering inclusive growth, Dar es Salaam can harness its opportunities and overcome its challenges for long-term prosperity.