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The government has struggled to ready the economy for the new millennium through economic reform and massive investment in communications and physical infrastructure, much financed from U.S. aid. Egypt is the second largest recipient of such funds from the United States after Israel. Economic conditions are starting to improve considerably after a period of stagnation due to the adoption of more liberal economic policies by the government, as well as increased revenues from tourism and a booming stock market.

The Arab conquest of Egypt took place in AD 641. Although the Imperial forces resisted the Arab army under Amr ibn al-As, the majority of the civilian population, having suffered persecution for the differing Christian beliefs, were less hostile; in some cases they welcomed their new masters. Considered "People of the Book", Christians were allowed to practice their religion, under the restrictions of the Islamic Shari'a law.

Egypt's excess of natural gas will more than meet its domestic demand for many years to come. The Ministry of Petroleum has established expanding the Egyptian petrochemical industry and increasing exports of natural gas as its most significant strategic objectives.

In the late 1970s Egypt had several cohabitation governments which proved to be unstable, due to the struggle arising between the President and the Prime Minister. However, since 1981, the National Democratic Party has maintained a majority in the People’s Assembly and supplied the Egyptian President.

Egypt also hosts two major religious institutions. Al-Azhar University, the oldest Islamic institution for higher studies (founded around 970 CE) with its corresponding mosque Al-Azhar. The head of Al-Azhar is traditionally regarded as the supreme leader of Sunni Muslims all over the world. Egypt also has a strong Christian heritage as evidenced by the existence of the Coptic Orthodox Church headed by the Patriarch of Alexandria, which claims a following of 50 million Christians worldwide (one of the famous Coptic Orthodox Churches is Saint Takla Haimanot Church in Alexandria

Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub; however, also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914.

The Ancient Egyptian language, which formed a separate branch among the family of Afro-Asiatic languages, was among the first written languages, and is known from hieroglyphic inscriptions preserved on monuments and sheets of papyrus. The Coptic language, the only extant descendant of Egyptian, is today the liturgical language of the Coptic Orthodox Church.

Egypt's vast and rich literature constitutes an important cultural element in the life of the country and in the Arab world as a whole. Egyptian novelists and poets were among the first to experiment with modern styles of Arabic literature, and the forms they developed have been widely imitated. Egyptian novelist Naguib Mahfouz was the first Arab to win the Nobel Prize in Literature. Egyptian books and films are available throughout the Middle East.

In December 1999, in response to strong criticism of the Ottoman decree, President Mubarak issued a decree making the repair of all places of worship subject to a 1976 civil construction code. The decree is significant symbolically because it places churches and mosques on equal footing before the law. The practical impact of the decree has been to facilitate significantly church repairs; however, Christians report that local permits still are subject to security authorities' approval. The approval process for church construction continued to be time consuming and insufficiently responsive to the wishes of the Christian community. As a result of these restrictions, some communities use private buildings and apartments for religious services.

Since the 1980s theologians from the two groups have been meeting in a bid to resolve the theological differences, and have concluded that many of the differences are caused by the two groups using different terminology to describe the same thing. In 1990, the Coptic and Antiochian Orthodox Churches agreed to mutually recognize baptisms performed in each other's churches, making rebaptisms unnecessary. In the summer of 2001, the Coptic Orthodox and Antiochian Orthodox agreed to recognize the sacrament of marriage as celebrated by the other. Previously, if a Coptic and Greek wanted to marry, the marriage had to be performed twice, once in each church, for it to be recognized by both. Now it can be done in only one church and be recognized by both.

Mummies have been an object of intense interest in the West since archaeologists began finding them in large numbers. 19th century aristocrats would often entertain themselves by buying mummies, having them unwrapped, and holding observation sessions. These sessions destroyed several mummies, because the exposure to the air caused them to desintegrate.