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Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub; however, also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914.

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

Among the modern talents of Egyptian literature, Naguib Mahfouz is foremost. In 1988, he was awarded the Nobel Prize for Literature. Other well-known Egyptian writers include Nawal El Saadawi, who is well known for her feminist works and activism, and Alifa Rifaat who is conservative and writes about women and tradition

Islamic political activism has a lengthy history in Egypt. Several Islamic political groups started soon after World War I ended. The most well-known Islamic political organization is the Muslim Brotherhood (Al Ikhwan al Muslimun, also known as the Brotherhood), founded in 1928 by Hassan al Banna. After World War II, the Muslim Brotherhood acquired a reputation as a radical group prepared to use violence to achieve its religious goals. The group was implicated in several assassinations, including the murder of one prime minister. The Brotherhood had contacts with the Free Officers before the 1952 Revolution and supported most of their initial policies. The Brotherhood, however, soon came into conflict with Gamal Abdel Nasser. The government accused the Brotherhood of complicity in an alleged 1954 plot to assassinate the president and imprisoned many of the group's leaders. In the 1970s, Anwar Sadat amnestied the leaders and permitted them to resume some of their activities. But by that time, the Brotherhood was divided into at least three factions. The more militant faction was committed to a policy of political opposition to the government. A second faction advocated peaceful withdrawal from society and the creation, to the extent possible, of a separate, parallel society based upon Islamic values and law. The dominant moderate group advocated cooperation with the regime.

Coptic Christians celebrate Christmas on the 7th of January which, since 2002, is an official national holiday in Egypt.

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.

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

Like other North Africans, Egyptians are not blacks. While northern Egyptians have on vast part maintained their reddish-white to reddish-brown skin, in reality not all Egyptians have the same skin colour. Egyptians living south of Cairo are usually darker than those in Northern Egypt.

Egypt is on good terms with Libya and Sudan, its African neighbours, although it has a land dispute with Sudan over the Hala'ib Triangle, a small area of land on the Egypt-Sudan border on the Red Sea coast. Sudan claims the area, although thge Egyptian military currently occupies it.

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.