The territorial jurisdiction of metropolises, as a critical area for controlling urban development and protecting natural resources, is influenced by complex economic and political interactions. Accordingly, political economy, as one of the key indicators of urban spatial transformations, shapes the physical, economic, and social developments of metropolitan territorial jurisdictions by impacting resource distribution, government policies, and the interests of stakeholder groups. The present study aims to examine the policymaking of the Ahvaz territorial jurisdiction from a political economy perspective. This research was conducted using a descriptive-analytical method, utilizing data collected through documentary and field methods to identify factors affecting the policymaking of the Ahvaz territorial jurisdiction. The statistical population consisted of 150 urban professors and experts, from which 100 individuals were selected using simple random sampling and the Cochran formula. Data were analyzed using SPSS software and exploratory factor analysis. The findings indicate that Ahvaz’s dependence on an oil-driven economy, coupled with legal gaps and institutional conflicts, has fueled marginalization and land speculation. Policymaking for the Ahvaz territorial jurisdiction requires an integrated approach that promotes sustainable development through enhanced financial policies, improved social welfare, legal transparency, and the use of technology. The results revealed that four factors—economic-political, social-cultural, legal-managerial, and technological-infrastructural—explain 74.212% of the total variance. The economic-political factor (41.606%) includes variables such as the level of informal settlements, government intervention, and poverty, playing a key role in shaping the territorial jurisdiction. The social-cultural factor (13.974%) focuses on access to urban services and migration, while the legal-managerial factor (10.747%) emphasizes policy alignment with national laws. The technological-infrastructural factor (7.885%) highlights the role of technology in monitoring and transparency.