In 1975, Sadat shifted Nasser's economic policies and sought to use his popularity to reduce government regulations and encourage foreign investment through his program of Infitah. Through this policy, incentives such as reduced taxes and import tariffs attracted some investors, but investments were mainly directed at low risk and profitable ventures like tourism and construction, abandoning Egypt's infant industries. Even though Sadat's policy was intended to modernise Egypt and assist the middle class, it mainly benefited the higher class, and, because of the elimination of subsidies on basic foodstuffs, led to the 1977 Egyptian Bread Riots. COUNT 4
QSN1 What was encouraged through Infitah? ANS1 foreign investment QSN2 What tools did Infitah use to attract investment? ANS2 reduced taxes and import tariffs QSN3 What was largely ignored and upset many of Sadat's polidy? ANS3 elimination of subsidies on basic foodstuffs QSN4 What occured in 1977? ANS4 Egyptian Bread Riots.