There can be many different approaches to the study of governments and their policies. Each of them has its advantages and disadvantages. One of the approaches would be a comparative case study which would give a clear frame of reference in relation to other states. In such a study it is possible to identify similarities and differences and relate the findings of one case to the findings of another. Such a study is useful but, because of the quantity of material, it might limit the depth of each case study. Comparative case studies are important, especially when no clear frame of reference is in place. In the case of states’ contemporary policy on Islamism, this frame is however already in place. Many of the theories of policy analysis emphasise extraordinary events as playing important roles in causing policy alterations. It is evident that for instance Nine Eleven led to changes in both western and eastern states’ stance towards Islamism. Knowing that, this thesis analyses whether any such events can be identified in the Egyptian context. Was Nine Eleven e.g. followed by a policy change in Egypt as well? Apart from the effect of extraordinary events, other causal factors are also illuminated. International relations, policy inheritance and the domestic situation can be mentioned as potentially interesting in further explaining policy stasis or change. This thesis aims at critically analysing the driving factors of the Egyptian state response to Islamism and Islamic extremism. In order to structure and systematise the data, the Punctuated Equilibrium Theory (PE) is applied as a tool of analysis. The thesis attempts to understand and explain policy change in President Mubarak’s Egypt by adapting a state-centric perspective and mainly using PE as a tool of analysis.