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The 20th century has seen Cairo become associated with a roots revival. Musicians from across the Arab world have kept folk traditions alive, while Nubians, Saiyidis and Bedouins have established their own scenes. New varieties of folk and pop have also arisen from the Cairo hit factory

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.

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

Egypt is on good terms with all of its neighbours, and was the first Arab nation to make peace with Israel. It has a territorial dispute with Sudan over the Hala'ib Triangle

The Egyptian military provides indirect support for the foreign policy of Egypt in the region. Egypt is the strongest military power on the African continent, and the second largest in the Middle East, after Israel.

The Egyptians are a fairly homogeneous people. Mediterranean and Arab influences appear in the north, and there is some mixing in the south with the Nubians of northern Sudan. Many theories has been proposed on the origins of the Egyptians, however non are conclusive, and the most widely accepted theory is that Egyptian society was the result of a mix of east african and asiatic people who moved to the Nile Valley after the ice age. The bulk of Modern Egyptian society still maintains a homogenous genetic tie to the ancient Egyptian society which has always been regarded as rural and most populous compared to the neighboring demographics. The Egyptian people spoke only languages from the Afro-Asiatic family (previously known as Hamito-semitic) throughout their history starting with Old Egyptian, to modern Arabic.

The capital city, Cairo, is Africa's largest city and has been renowned for centuries as a center of learning, culture and commerce of Egypt.

After Mohamed Naguib resigned in 1954, Gamal Abdel Nasser, the real architect of the 1952 Revolution, assumed power as President and nationalized the Suez Canal leading to the 1956 Suez Crisis. Between 1958 and 1961 Egypt and Syria formed a union known as the United Arab Republic.

Crude oil production has been in decline for several years, from 45,200,000 t in 93/94 to 37,000,000 t in 99/00. Oil production in late 2001 was about 118,000 m³ (740,000 barrels) per day. To minimize the growing domestic demand of petroleum products (approximately 23 mmt) Egypt is encouraging the production of natural gas. Natural gas output continues to increase and reached 18 mmt of oil equivalents in 2001.