Under President Gamal Abdel Nasser, Egypt's economy was dominated by state control and a command economy structure, with limited scope for private investment. Critics by the 1970s labeled it a "Soviet-style system" characterized by inefficiency, excessive bureaucracy, and wastefulness.^[141]

President Anwar Sadat, succeeding Nasser, sought to shift Egypt's focus from continuous conflict with Israel and the heavy allocation of resources to the military. He believed in capitalist economic policies to foster a significant private sector. Aligning with the United States and the West was seen as a pathway to prosperity and potentially democratic pluralism.^[142] The Infitah, or "openness" policy, marked a significant ideological and political shift from Nasser's approach. It aimed to relax government control over the economy and encourage private investment. This policy created a wealthy upper class and a modest middle class but had limited impact on the average Egyptian, leading to widespread dissatisfaction. The removal of subsidies on basic foodstuffs in 1977 under Infitah triggered massive 'Bread Riots'. The policy has been criticized for resulting in rampant inflation, land speculation, and corruption.^[137]

Economic liberalization during Sadat's tenure also saw a significant migration of Egyptians abroad for work. Between 1974 and 1985, over three million Egyptians moved to the Persian Gulf region. The remittances from these workers allowed their families back home to afford consumer goods like refrigerators and cars.^[143]

In the realm of civil liberties, Sadat's policies included reinstating due process and legally banning torture. He dismantled much of Nasser's political machinery and prosecuted former officials for abuses during the Nasser era. While initially encouraging broader political participation, Sadat later retreated from these efforts. His final years were marked by increasing violence due to public discontent, sectarian tensions, and a return to repressive measures, including extrajudicial arrests.