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The Constitution provides for freedom of belief and the practice of religion; however, the Government places restrictions on this right. According to the Constitution, Islam is the official state religion, and Shari'a is the primary source of legislation; religious practices that conflict with the official interpretation of Shari'a are prohibited. However, since the Government does not consider the practice of Christianity or Judaism to conflict with Shari'a, for the most part members of the non-Muslim minority worship without legal harassment and may maintain links with coreligionists in other countries. Members of other religions that are not recognized by the Government, such as the Baha'i Faith, may experience personal and collective hardship.

Egypt operates under a multi-party semi-presidential system where the executive power is divided between the President and the Prime Minister. Egypt holds regular presidential and parliamentary elections. The last Presidential Election was held in 1999 and is scheduled to be held in October 2005. However, there is expressed concern from international human rights observers concerning freedom of speech and government interference in local elections.

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.

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.

As of 1990, Egyptian Islam was a complex and diverse religion. Although Muslims agreed on the faith's basic tenets, the country's various social groups and classes applied Islam differently in their daily lives. The literate theologians of Al-Azhar University generally rejected the version of Islam practiced by illiterate religious preachers and peasants in the countryside. Most upper- and middle-class Muslims believed either that religious expression was a private matter for each individual or that Islam should play a more dominant role in public life. Islamic religious revival movements, whose appeal cut across class lines, were present in most cities and in many villages.