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Teaching is a basic function of a university and in which all other functions are subsumed. This makes a teaching policy key in university education. The academic achievement at Amoud University declined drastically in 2010-2013 from 31.4% in 2010, to 45.1% in 2011, 46.2% in 2012, and to 51.8% in 2013, reflecting an increase of 4.75% each year. Yet the effect of teaching policy had not been isolated. The survey used a sample of 152 teachers and 760 students, in September to November, 2014. It established that teaching method (F [1, 111] = 11.230, p = .029); R = .794, R2 adj. = .596); students' evaluation (F [1, 111] = 28.200, p = .038); R = .569, R2 adj. = .309), and teacher qualification (F [1, 111] = 4.56, p = .001; R = .640, R2 adj. = .383) significantly affect academic achievement. But teaching materials (F [1, 111] = .150, p = .699) do not. The study concluded that teaching policy has a significant effect on academic achievement at Amoud University. It recommends that the University revises its teaching policy to emphasize discussion, eclectic and technology aided methodologies; and evaluation methods that encourage students' reflection, with the right blend of structure.