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Egypt is a key partner in the search for peace in the Middle East and resolution of the Israeli-Palestinian conflict. Then President of Egypt Anwar Sadat's groundbreaking trip to Israel in 1977, the 1978 Camp David Accords, and the 1979 Egypt-Israel Peace Treaty represented a fundamental shift in the politics of the region; from a strategy of confrontation to one of peace as a strategic choice. Egypt was subsequently ostracized by other Arab states and ejected from the Arab League from 1979 to 1989.

In the third century, during the persecution of Decius, some Christians fled to the desert, and remained there to pray after the persecutions abated. This was the beginning of the monastic movement, which was reorganized by the saints Anthony the Great and Pachomius in the 4th century. By the end of the century, there were hundreds of monasteries, and thousands of cells and caves scattered throughout the Egyptian hills. A number of these monasteries are still flourishing and have new vocations till this day.

The Government, or the cabinet, is headed by the Prime Minister of Egypt. It has at its disposal the civil service the government agencies. The cabinet, headed by the Prime Minister, is responsible only to Parliament, specifically the People’s Assembly. The People’s Assembly may pass a motion of censure, forcing the resignation of the cabinet. Ministers have to answer questions from Members of Parliament, both written and oral; this is known as Inquiries to the Government Talebat Ihata. In addition, ministers attend meetings of the two houses of Parliament when laws pertaining to their areas of responsibility are being discussed.

Egyptian Deputy Prime Minister Boutros Boutros-Ghali served as Secretary General of the United Nations from 1991 to 1996.

Egyptian monasticism attracted the attention of Christians in other parts of the world, who visited Egypt, many bringing monastic ideas home with them, and spreading monasticism through the Christian world. Saint Basil, organizer of the monastic movement in Asia Minor visited Egypt around AD 357 and his rule is followed by the eastern Churches; Saint Jerome, en route to Jerusalem, stopped in Egypt and left details of his experiences in his letters; Saint Benedict founded monasteries in the 6th century on the model of Pachomius, but in a stricter form.

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.

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.

Egypt has endured as a unified state for more than 5,000 years, and archeological evidence indicates that a developed Egyptian society has existed for much longer. Egyptians take pride in their pharaonic heritage and in their descent from what many consider mankind's earliest civilization. The Arabic word for Egypt is Misr, which originally connoted "civilization" or "metropolis".

The "Koiné" dialect of the Greek language was important in Hellenistic Alexandria, and was used in the philosophy and science of that culture, and was also studied by later Arabic scholars.

The Egyptian judicial system is based on European, primarily French, legal concepts and methods. Under the several governments during the presidency of Mubarak, the courts have demonstrated increasing independence, and the principles of due process and judicial review have gained greater respect. The legal code is derived largely from the Napoleonic Code. Marriage and personal status are primarily based on the religious law of the individual concerned. Thus, there are three forms of Family Law in Egypt, Islamic, Christian, and secular (based on the French Family Laws).

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.

By some accounts there are more than 40 million Coptic Orthodox Christians in the world: they are found primarily in Egypt (roughly 10 million), Ethiopia (roughly 30 million), and Eritrea (roughly 2 million), but there are significant numbers in Sudan and Israel, and in diaspora throughout the world. However, as applied to the Tewahedo Church of Ethiopia, which before 1950 was a part of the Coptic Church of Egypt, the word Coptic can be considered a misnomer because it means Egyptian. The Eritrean Orthodox Church similarly became independent of the Tewahedo Church during the 1990s. These three churches remain in full communion with each other and with the other Oriental Orthodox churches.

During the Greco-Roman period (332 BC–AD 639), Egyptian literature was translated into other languages, and Greco-Roman literature fused with native art into a new style of writing. From this period comes the Rosetta Stone, which became the key to unlocking the mysteries of Egyptian writing to modern scholarship. The great city of Alexandria boasted its famous Library of almost half a million handwritten books during the third century BC. Alexandria's centre of learning also produced the Greek translation of the Hebrew Bible, the Septuagint.

The Catechetical School of Alexandria is the oldest catechetical school in the world. Founded around 190 by the scholar Pantanaeus, the school of Alexandria became an important institution of religious learning, where students were taught by scholars such as Athenagoras, Clement, Didymus, and the great Origen, who was considered the father of theology and who was also active in the field of commentary and comparative Biblical studies. Origen wrote over 6,000 commentaries of the Bible in addition to his famous Hexapla. Many scholars such as Saint Jerome visited the school of Alexandria to exchange ideas and to communicate directly with its scholars. The scope of this school was not limited to theological subjects; science, mathematics and humanities were also taught there. The question and answer method of commentary began there, and 15 centuries before Braille, wood-carving techniques were in use there by blind scholars to read and write.

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.