THE recent discovery of Property Law violations in Sinai has been an alarm call urging more vigilance on the part of the State institutions concerned. Considering the sensitive nature of Sinai as the eastern gate and the border zone to a neighbour that had already occupied it for six years (l967-73), the ban on foreign ownership of land and real estate comes under national security prerequisites. A complaint lodged by a citizen whereby he pinpointed the Jewish ownership of some plots of land and villas in a tourist resort in South Sinai has revealed malpractices in this connection. Sinai, despite its strategic significance and development potential, has been so far a weak point in the policies of subsequent governments. The peninsula has, nevertheless, been upgraded as far as tourism is concerned. It is actually frequented by tourists of all nationalities including Israelis, who are allowed entry as stipulated in a binding peace treaty between Egypt and Israel. Some public sector and private industrial projects have been implemented, but they lag behind the actual potential of Sinai. Calls have been voiced for the reconstruction of Sinai by introducing housing communities and agricultural, commercial and industrial projects as a safety valve. However, this would mean the enhancement of foreign investments which would pose a risk to the property ownership laws. Before letting more foreign capital into the area, there has to be an all-embracing database including information on foreign investment activities and the investors in order to keep things under control. If plots of land have been already sold to Jews, when the population is still minimal, what would the situation be like with an influx of business people of different nationalities?