This study aims to assessing the effective role that Environmental Policies play in achieving the industrial development through working inside free export zones, which occupied a major space of economists and politicians concerns whether in the developed or developing countries. These zones were established to attract, localize investments and as they considered one of economic development priorities. Due to the intensive competition that the world witnesses, it was necessary for all different types of organizations to find a shelter that protect them from the storms of change that characterizes the global market. This study reveals that the existence and sustainability of industrial organizations depend mainly on their commitment with applying the environmental policies through adopting the principle of preventing pollution at its source. Accordingly, the industrial organization endeavors to assess its current environmental position, adopts techniques of green production technologies, takes over polices of energy and resources rationalization, minimizing emits and pollutants. In addition to, using measures that target reducing the flow of wastes to increase recyclability, achieve competitiveness and access to global markets. It was revealed after studying the impact of current Environmental Policies that they don't reflect the quantity and quality of environmental issues already existed inside the free export zones, some of which, (Safe disposal of hazardous wastes and Solid wastes). As well as, the current environmental legislations don't keep pace with the continuous acceleration occurred in industrial development, which leads to a significant gap between what is stipulated in the law and the real practice.