This paper presents the design and implementation of a two-axis stand alone rotary sun tracker. The objective is to analyze the effects of introducing both physical sun-tracking and maximum power point tracking (MPPT) on PV systems' efficiency in the gulf region. A two-axis rotation mechanism is implemented to track the sun over both the azimuth and elevation angles. The position of the sun is determined using the astronomical method. The sun's azimuth and elevation angles are continuously updated throughout the day using a Digital Signal Processor (DSP). The calculated angles are then used as set-points for two closed-loop control systems with PI controllers implemented in the DSP. The panel power is passed through a charger that implements perturb and observe MPPT algorithm to keep the system power operating point at its maximum value.