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Under the system created by the 1980 constitutional amendments, the President is the pre-eminent executive figure, who names the Prime Minister. When the President's political party or supporters control parliament, the President is in effect the ‘dominant’ player in executive action, choosing whoever he wishes for government, and having it follow ‘his’ political agenda. However, when the President's political opponents control parliament, the President's dominance can be severely limited, as he must choose a prime minister and cabinet reflecting the majority in parliament. When parties from opposite ends of the political spectrum control parliament and the presidency, the power-sharing arrangement is known as cohabitation. By convention, the President controls foreign-affairs and defence related issues of the state, while the Prime Minister manages the day-to-day affairs including the economy.

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.

Before the construction of dams on the Nile, particularly the Aswan High Dam (started in 1952, completed in 1970), the fertility of the Nile Valley was sustained by the water flow and the silt deposited by the annual flood. Sediment is now obstructed by the Aswan High Dam and retained in Lake Nasser. The interruption of yearly, natural fertilization and the increasing salinity of the soil has been a manageable problem resulting from the dam. The benefits remain impressive: more intensive farming on thousands of square kilometres of land made possible by improved irrigation, prevention of flood damage, and the generation of millions of gigajoules of electricity at low cost.

Egypt played an important role in the negotiations leading to the Madrid Peace Conference in 1991, which, under United States and Russian sponsorship, brought together all parties in the region to discuss Middle East peace. This support has continued to the present, with President Hosni Mubarak often intervening personally to promote peace negotiations. In 1996, he hosted the Sharm El-Sheikh "Summit of the Peacemakers" attended by President Bill Clinton and other world leaders. In 2000, he hosted two summits at Sharm El-Sheikh and one at Taba in an effort to resume the Camp David negotiations suspended in July of 2000, and in June 2003, Mubarak hosted President George W. Bush for another summit on Middle East peace process.

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

In modern times, archaeology and the study of Egypt's ancient heritage as the field of Egyptology has itself become a major scientific pursuit in the country. Led at first by Westerners, this modern rediscovery has in recent decades been taken up by Egyptian archeaologists such as Zahi Hawass and the Supreme Council of Antiquities he leads. None of this could have taken place, though, without the discovery of the Rosetta Stone, a tablet written in ancient Greek, Egyptian demotic script, and Egyptian hieroglyphs. Greek, a well known language, gave linguists the ability to decipher the mysterious Egyptian hieroglyphic language. The ability to decipher hieroglyphics facilitated the translation of hundreds of the texts and inscriptions that were previously indecipherable, giving us insight into Egyptian culture that would have otherwise been lost to the ages. The stone was discovered on July 15, 1799 in the port town of Rosetta, Egypt,and has been held in the British Museum since 1802.

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

Ethnic minorities include a small number of Bedouin Arab nomads in the Sinai and eastern and western deserts, as well as some Nubians clustered along the Nile in Upper (southern) Egypt who are estimated for about 0.8% of the population.

Coptic Christianity became popular in the Roman and Byzantine periods, and Egypt was indeed one of the strongest early Christian communities. Today, Christians constitute about 10% of the population.

In the Upper Nile Valley, around Kom Ombo and Aswan, there are about 300,000 speakers of Nubian languages, mainly Nobiin, but also Kenuzi-Dongola. The Berber languages are represented by Siwi, spoken by about 5,000 around the Siwa Oasis. There are over a million speakers of the Domari language (an Indo-Aryan language related to Romany), mostly living north of Cairo, and there are about 60,000 Greek speakers in Alexandria. Approximately 77,000 speakers of Bedawi (a Beja language) live in the Eastern Desert.