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A summit was convened in Sharm El Sheik in early 2005, which was attended by Egypt, Israel, the Palestinian Authority and Jordan. The Egyptian Chief of Intelligence, General Omar Suleiman, has played a substantial role in negotiations between the Israeli and Palestinian sides and is highly respected on both sides.

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.

Ancient Egyptian literature dates back to the Old Kingdom, in the third millennium BC. Religious literature is best known for its hymns to various gods and its mortuary texts. The oldest extant Egyptian literature are the Pyramid Texts: the mythology and rituals carved around the tombs of rulers. The later, secular literature of ancient Egypt includes the 'wisdom texts', forms of philosophical instruction. The Instruction of Ptahhotep, for example, is a collation of moral proverbs by an Egyptian administrator. The authors of the literature of the Old and Middle Kingdoms (through to the middle of the second millennium BC) seem to have been drawn from an elite administrative class, and were celebrated and revered into the New Kingdom (to the end of the second millennium). In time the Pyramid Texts became Coffin Texts (perhaps after the end of the Old Kingdom), and finally the mortuary literature produced its masterpiece, the Book of the Dead, during the New Kingdom.

The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society.

In Egypt, the dead were originally not mummified with the extensive process that happened during the first dynasty. The dead were originally buried in reed caskets in the sand. The searing hot sand caused the remains to dry quickly, preventing decomposition. After a while, though, they started constructing wooden tombs, and the extensive process of mummification was made so that the bodies would not decompose in the afterlife.

Popular Islam is based mostly on oral tradition. Imams with virtually no formal education commonly memorize the entire Qur'an and recite appropriate verses on religious occasions. They also tell religious stories at village festivals and commemorations marking an individual's rites of passage. Predestination plays an important role in popular Islam. This concept includes the belief that everything that happens in life is the will of God and the belief that trying to avoid misfortune is useless and invites worse affliction. Monotheism merges with a belief in magic and spirits (jinns) who are believed to inhabit the mountains.

Belly dance, or Raqs Sharqi in Arabic, may have originated in Egypt, and today the country is considered the international center of the art.

A series of International Monetary Fund arrangements, coupled with massive external debt relief resulting from Egypt's participation in the Gulf War coalition, helped Egypt improve its macroeconomic performance during the 1990s. Through sound fiscal and monetary policies, Cairo tamed inflation, slashed budget deficits, and built up foreign reserves. Although the pace of structural reforms, such as privatization and new business legislation, has been slower than the IMF envisioned, Egypt's steps toward a more market-oriented economy have prompted increased foreign investment. Lower combined hard currency inflows - from tourism, worker remittances, oil revenues, and Suez Canal tolls - in 1998 and the first half of 1999 resulted in pressure on the Egyptian pound and sporadic dollar shortages, but external payments were not in crisis. Despite ample reserves, the Central Bank did not provide sufficient hard currency to commercial banks and Cairo restricted imports for a short period; these developments confirmed to some investors and currency traders that government financial operations lack sufficient coordination and openness. Monetary pressures have since eased, however, with the continued oil price recovery starting in mid-1999 and a moderate rebound in tourism. Increased gas exports are a major plus factor in future growth.

The Shura Council is the 264-member upper house of Parliament created in 1980. The Shura Council roughly translates to the ‘Consultative Council’ in English. In the Shura Council 174 members are directly elected and 88 members are appointed by the President of the Republic for 6-year terms. One half of the Shura Council is renewed every three years.

The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world's great civilisations. A unified kingdom arose circa 3200 BC by King Mina, and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty, known as the Thirtieth Dynasty, fell to the Persians in 341 BC who dug the predecessor of the Suez canal and connected the Red Sea to the Mediterranean. Later, Egypt fell to the Greeks, Romans, Byzantines and Persians again.

As early as 4000 BC, ancient Egyptians were playing harps and flutes, as well as two indigenious instruments: the ney and the oud. However, there is no notation of Egyptian music before the 7th century AD, when Egypt became part of the Arab world. Percussion and vocal music became important at this time, which has remained an important part of Egyptian music today.

The Arab League headquarters is in Cairo, and the Secretary General of the League is traditionally an Egyptian. Former Egyptian Foreign Minister Amre Moussa is the present Secretary General of the Arab League. Egyptian Deputy Prime Minister Boutros Boutros-Ghali served as Secretary General of the United Nations from 1991 to 1996.

A primarily male spiritual manifestation is Sufism, an Islamic mystical tradition. Sufism has existed since the early days of Islam and is found in all Islamic countries. The name derives from the Arabic word suf (wool), referring to the rough garb of the early mystics. Sufism exists in a number of forms, most of which represent an original tarika developed by an inspired founder, or shaykh. These shaykhs gradually gathered about themselves murids, or disciples, whom they initiated into the tarika. Gradually the murids formed orders, also known as turuq, which were loyal to the shaykh or his successors. The devotions of many Sufi orders center on various forms of the dhikr, a ceremony at which music, body movements, and chants induce a state of ecstatic trance in the disciples. Since the early 1970s, there has been a revival of interest in Sufism. Egypt's contemporary Sufis tend to be young, college-educated men in professional careers.