History of Egypt under Anwar Sadat successes restored Egyptian pride and led to peace talks with the Israelis that eventually led to Egypt regaining the entire Sinai peninsula in exchange for a peace agreement. Sadat used his immense popularity with the Egyptian people to try to push through vast economic reforms that ended the socialistic controls of Nasserism. Sadat introduced greater political freedom and a new economic policy, the most important aspect of which was the infitah or "openness". This relaxed government controls over the economy and encouraged private investment. While the reforms created a wealthy and successful upper class and a small middle class, these
Anwar Sadat were turned from bitter enemies into fast friends. The relationship between Cairo and Tehran became so friendly that the Shah of Iran, Mohammad Reza Pahlavi, called Sadat his "dear brother". After the 1973 war with Israel, Iran assumed a leading role in cleaning up and reactivating the blocked Suez Canal with heavy investment. The country also facilitated the withdrawal of Israel from the occupied Sinai Peninsula by promising to substitute the loss of the oil to the Israelis with free Iranian oil if they withdrew from the Egyptian oil wells in western Sinai. All these added more to the personal