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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 has been a republic since 18 June 1953. President Mohamed Hosni Mubarak has been the President of the Republic since October 14, 1981, following the assassination of former President Anwar Sadat. President Mubarak is currently serving his fourth term in office. He is the leader of the ruling National Democratic Party. Prime Minister Ahmed Nazif was sworn in as Prime Minister on 9 July 2004, following the resignation of Dr. Atef Obied from his office.

Egypt operates under a multi-party semi-presidential system where the executive power is divided between the President and the Prime Minister. Egypt holds regular presidential and parliamentary elections. The last Presidential Election was held in 1999 and is scheduled to be held in October 2005. However, there is expressed concern from international human rights observers concerning freedom of speech and government interference in local elections.

Some famous Egyptians include: Gamal Abdel Nasser (former president), Boutros Boutros-Ghali (former Secretary General of the United Nations), Naguib Mahfouz (Nobel Prize-winning novelist), Umm Kulthum (singer), Omar Sharif (actor), Ahmed Zewail (Nobel Prize-winning chemist), Mohamed ElBaradei (Head of the International Atomic Energy Agency), Anwar Sadat (former president and winner of the Nobel Peace Prize),

Orthodox ulama found themselves in a difficult position during the wave of Islamic activism that swept through Egypt in the 1970s and 1980s. Radical Islamists viewed the ulama as puppets of the status quo. To maintain their influence in the country, the ulama espoused more conservative stances. After 1974, for example, many Al Azhar ulama, who had acquiesced to family planning initiatives in the 1960s, openly criticized government efforts at population control. The ulama also supported moves to reform the country's legal code to conform to Islamic teaching. They remained, nonetheless, comparatively moderate; they were largely loyal to the government and condemned the violence of radical Islamist groups.

Under Islam, Egypt continued to be a great source of literary endeavour, now in the Arabic language. In 970, al-Azhar University was founded in Cairo, which to this day remains the most important centre of Sunni Islamic learning. In the 12th century Egypt, the Jewish talmudic scholar Maimonides produced his most important work.

The first Christians in Egypt were mainly Alexandrian Jews such as Theophilus, whom Saint Luke the Evangelist addresses in the introductory chapter of his gospel. When the church was founded by Mark during the reign of the Roman emperor Nero, a great multitude of native Egyptians (as opposed to Greeks or Jews) embraced the Christian faith. Christianity spread throughout Egypt within half a century of Mark's arrival in Alexandria as is clear from the New Testament writings found in Bahnasa, in Middle Egypt, which date around the year 200 AD, and a fragment of the Gospel of Saint John, written in Coptic, which was found in Upper Egypt and can be dated to the first half of the second century. In the second century Christianity began to spread to the rural areas, and scriptures were translated into the local language, namely Coptic