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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.

Various Islamist groups espoused different means for achieving their political agenda. All Islamists, however, were concerned with Islam's role in the complex and changing society of Egypt in the late twentieth century. A common focus of their political efforts has been to incorporate the Shari'a into the country's legal code. In deference to their increasing influence, the Ministry of Justice in 1977 published a draft law making apostasy by a Muslim a capital offense and proposing traditional Islamic punishments for crimes, such as stoning for adultery and amputation of a hand for theft. In 1980 Egypt supported a referendum that proposed a constitutional amendment to make the Shari'a "the sole source of law." The influence of the Islamists temporarily waned in the aftermath of Sadat's assassination in 1981, but the election of nine members of the Muslim Brotherhood to the People's Assembly in 1984 revived Islamists' prospects. In 1985 the People's Assembly voted to initiate a procedure for the gradual application of the Shari'a, beginning with an indefinite education period to prepare the population for the legal changes; the next step would be to amend all existing laws to exclude any provisions that conflict with the Shari'a. Moves to reform the legal code received support from many Muslims who wanted to purify society and reject Western legal codes forced on Egypt in the nineteenth and twentieth centuries

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.

It was the Muslim Arabs who introduced Islam and the Arabic language in the Seventh Century changing Egypt into a linguistically "Arab" nation once and for all. Muslim rulers nominated by the Islamic Caliphate remained in control of Egypt for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern even after the conquest of Egypt by the Ottoman Turks in 1517.

The President names the Prime Minister and may preside over the cabinet. President Mubarak holds a monthly meeting with the cabinet on which he presides. In addition, the President is the Supreme Commander of the Egyptian Armed Forces. The President concludes treaties and may submit questions to national referenda. The President also possesses the constitutional power to dissolve the People’s Assembly, however, no President has ever done so. In certain emergencies, the President may assume special, comprehensive powers.