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Under comprehensive economic reforms initiated in 1991, Egypt has relaxed many price controls, reduced subsidies, and partially liberalized trade and investment. Manufacturing is still dominated by the public sector, which controls virtually all heavy industry. A process of public sector reform and privatization has begun, however, which could enhance opportunities for the private sector. Agriculture, mainly in private hands, has been largely deregulated, with the exception of cotton and sugar production. Construction, non-financial services, and domestic marketing are largely private. This has promoted a steady increase of GNP and the annual growth rate. Among Arab countries, Egypt's GDP is second only to Saudi Arabia's. However, the Egyptian economy relies heavily on tourist revenues. The tourism sector suffered tremendously following a terrorist attack on tourists in Luxor in October 1997, and the September 11, 2001 terrorist attacks against the United States, affecting the economy as a whole.

Despite the political upheaval, Egypt remained a predominently Christian land, although gradual conversions to Islam over the centuries had the effect of changing Egypt from a predominantly Christian to a predominantly Muslim country by the end of the 12th century.

Archeological findings show that primitive tribes lived along the Nile long before the dynastic history of the pharaohs began. By 6000 B.C., organized agriculture had appeared.

Egyptian music began its recorded history in the 1910s, at the same time as composers like Sayed Darwish's first mixtures of traditional Egyptian and western musical forms. Since, some of the Arab world's biggest musical stars have been Egyptian, including Mohamed Abdel Wahab, Umm Kulthum, Amr Diab, Mohamed Al-Qasabji and Zakariyya Ahmad. Kulthum was especially popular, and is considered the most successful Egyptian recording artist in history. Most of these stars, including Kalthum, sang Arab classical music. Some, like Abd el-Halim Hafez, were associated with the nationalist revolution in 1952

As of 1989, the Islamists sought to make Egypt a community of the faithful based on their vision of an Islamic social order. They rejected conventional, secularist social analyses of Egypt's socioeconomic problems. They maintained, for example, that the causes of poverty were not overpopulation or high defense expenditures but the populace's spiritual failures--laxness, secularism, and corruption. The solution was a return to the simplicity, hard work, and self-reliance of earlier Muslim life. The Islamists created their own alternative network of social and economic institutions through which members could work, study, and receive medical treatment in an Islamic environment.

The Shura Council's legislative powers are limited. On most matters of legislation, the People’s Assembly retains the last word in the event of a disagreement between the two houses.

Prior to Napoleon's invasion, almost all of Egypt's educational, legal, public health, and social welfare issues were in the hands of religious functionaries. Ottoman rule reinforced the public and political roles of the ulama (religious scholars) because Islam was the state religion and because political divisions in the country were based on religious divisions. During the nineteenth and twentieth centuries, successive governments made extensive efforts to limit the role of the ulama in public life and to bring religious institutions under closer state control. The secular transformation of public life in Egypt depended on the development of a civil bureaucracy that would absorb many of the ulama's responsibilities in the country.

Egypt is a key partner in the search for peace in the Middle East and resolution of the Israeli-Palestinian conflict. Then President of Egypt Anwar Sadat's groundbreaking trip to Israel in 1977, the 1978 Camp David Accords, and the 1979 Egypt-Israel Peace Treaty represented a fundamental shift in the politics of the region; from a strategy of confrontation to one of peace as a strategic choice. Egypt was subsequently ostracized by other Arab states and ejected from the Arab League from 1979 to 1989.

Today devout Muslims believe that Islam defines one's relationship to God, to other Muslims, and to non-Muslims. They also believe that there can be no dichotomy between the sacred and the secular. Many devout Muslims say that Egypt's governments have been secularist and even antireligious since the early 1920s. Politically organized Muslims who seek to purge the country of its secular policies are referred to as "Islamists."

According to a 1995 law, the application of family law, including marriage, divorce, alimony, child custody, inheritance, and burial, is based on an individual's religion. In the practice of family law, the State recognizes only the three "heavenly religions:" Islam, Christianity, and Judaism. Muslim families are subject to the Personal Status Law, which draws on Shari'a (Islamic law). Christian families are subject to canon law, and Jewish families are subject to Jewish law. In cases of family law disputes involving a marriage between a Christian woman and a Muslim man, the courts apply the Personal Status Law.