This paper attempts to explain the rationale for competition policy in an emerging economy. It reviews the theoretical debate on the issue, highlighting the claims for and against the adoption of competition policy. The paper then discusses the difficulties facing an emerging economy in formulating competition policy and explores the reasons for the reluctance in implementing competition policy in Egypt. Besides, it sheds light on the recent economic changes that entail the inclusion of competition policy in the economic reform programme. Finally, the paper provides a review of the Egyptian competition policy and concludes with remarks on the prospects of its implementation.