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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.

An 1856 Ottoman decree still in force requires non-Muslims to obtain a presidential decree to build a place of worship. In addition Interior Ministry regulations issued in 1934 specify a set of 10 conditions that the Government must consider prior to issuance of a presidential decree permitting construction of a church. These conditions include the location of the proposed site, the religious composition of the surrounding community, and the proximity of other churches. The Ottoman decree also requires the President to approve permits for the repair of church facilities.

Over the last 20 years, more than 217 oil exploration agreements have been signed and multinational oil companies spent more than $27 billion in exploration companions. These activities let to the findings of about 18 crude oil fields and 16 natural gas fields. As a result of these findings, crude oil reserves as of September 2001 are estimated at 445 million m³ (2.8 billion barrel), and proven natural gas reserves are 1,600 km³ (55 trillion ft³) with a likely additional 1,800 km³ (65 trillion ft³). Texas-based Apache Oil Company is the largest American investor in Egypt, with a total investment of more than $1.6 billion since 1996.

After the 1952 Revolution, the government assumed responsibility for appointing officials to mosques and religious schools. The government mandated reform of Al-Azhar University beginning in 1961. These reforms permitted department heads to be drawn from outside the ranks of the traditionally trained orthodox ulama.

A primarily male spiritual manifestation is Sufism, an Islamic mystical tradition. Sufism has existed since the early days of Islam and is found in all Islamic countries. The name derives from the Arabic word suf (wool), referring to the rough garb of the early mystics. Sufism exists in a number of forms, most of which represent an original tarika developed by an inspired founder, or shaykh. These shaykhs gradually gathered about themselves murids, or disciples, whom they initiated into the tarika. Gradually the murids formed orders, also known as turuq, which were loyal to the shaykh or his successors. The devotions of many Sufi orders center on various forms of the dhikr, a ceremony at which music, body movements, and chants induce a state of ecstatic trance in the disciples. Since the early 1970s, there has been a revival of interest in Sufism. Egypt's contemporary Sufis tend to be young, college-educated men in professional careers.

Prior to Napoleon's invasion, almost all of Egypt's educational, legal, public health, and social welfare issues were in the hands of religious functionaries. Ottoman rule reinforced the public and political roles of the ulama (religious scholars) because Islam was the state religion and because political divisions in the country were based on religious divisions. During the nineteenth and twentieth centuries, successive governments made extensive efforts to limit the role of the ulama in public life and to bring religious institutions under closer state control. The secular transformation of public life in Egypt depended on the development of a civil bureaucracy that would absorb many of the ulama's responsibilities in the country.

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," wrote the Greek historian Herodotus 25 centuries ago, "is the gift of the Nile." The land's seemingly inexhaustible resources of water and soil carried by this mighty river created in the Nile Valley and Delta the world's most extensive oasis. Without the Nile, Egypt would be little more than a desert wasteland.