History of Israel occupied territories. In November 1977, Egyptian President Anwar Sadat broke 30 years of hostility with Israel by visiting Jerusalem at the invitation of Israeli Prime Minister Menachem Begin. Sadat's two-day visit included a speech before the Knesset and was a turning point in the history of the conflict. The Egyptian leader created a new psychological climate in the Middle East in which peace between Israel and its Arab neighbours seemed possible. Sadat recognized Israel's right to exist and established the basis for direct negotiations between Egypt and Israel. Following Sadat's visit, 350 Yom Kippur War veterans organized the Peace Now
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