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Egypt is the most populous country in the Arab world and the second-most populous on the African Continent. Nearly 100% of the country's 76 million people live in Cairo and Alexandria; elsewhere on the banks of the Nile; in the Nile delta, which fans out north of Cairo; and along the Suez Canal. These regions are among the world's most densely populated, containing an average of over 3,820 persons per square mile (1,540 per sq. km.), as compared to 181 persons per sq. mi. for the country as a whole.

Egypt's largely uneducated urban and rural lower classes were intensely devoted to Islam, but they lacked a thorough knowledge of the religion. Even village religious leaders had only a rudimentary knowledge of Islam. The typical village imam or prayer leader had at most a few years of schooling; his scholarly work was limited to reading prayers and sermons prepared by others and to learning passages from the Qur'an. Popular religion included a variety of unorthodox practices, such as veneration of saints, recourse to charms and amulets, and belief in the influence of evil spirits.

Arabic came to Egypt in the seventh century, and Egyptian Arabic has become the modern speech of the country. Of the many varieties of Arabic, it is the most widely spoken second dialect, probably due to the influence of Egyptian cinema throughout the Arabic-speaking world.

Geography, population, history, military strength, and diplomatic expertise give Egypt extensive political influence in the Middle East. Cairo has been a crossroads of Arab commerce and culture for millennia, and its intellectual and Islamic institutions are at the center of the region's social and cultural development.

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

Small communities spread throughout the desert regions of Egypt are clustered around oases and historic trade and transportation routes. The government has tried with mixed success to encourage migration to newly irrigated land reclaimed from the desert. However, the proportion of the population living in rural areas has continued to decrease as people move to the cities in search of employment and a higher standard of living.

The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society.

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.

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.

The government has struggled to ready the economy for the new millennium through economic reform and massive investment in communications and physical infrastructure, much financed from U.S. aid. Egypt is the second largest recipient of such funds from the United States after Israel. Economic conditions are starting to improve considerably after a period of stagnation due to the adoption of more liberal economic policies by the government, as well as increased revenues from tourism and a booming stock market.

Export of petroleum and related products amounted to $2.6 billion in the year 2000. In late 2001, Egypt's benchmark "Suez Blend" was about $16.73 per barrel ($105/m³), the lowest price since 1999.

Egypt also hosts two major religious institutions. Al-Azhar University, the oldest Islamic institution for higher studies (founded around 970 CE) with its corresponding mosque Al-Azhar. The head of Al-Azhar is traditionally regarded as the supreme leader of Sunni Muslims all over the world. Egypt also has a strong Christian heritage as evidenced by the existence of the Coptic Orthodox Church headed by the Patriarch of Alexandria, which claims a following of 50 million Christians worldwide (one of the famous Coptic Orthodox Churches is Saint Takla Haimanot Church in Alexandria

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.

The United States is a major supplier of wheat, corn, and soybean products to Egypt, almost all through commercial sales. Egypt is, in fact, the U.S.'s largest market for wheat sales. U.S. agricultural sales to Egypt total $1 billion annually. U.S. food assistance programs to Egypt ended in 1992 as Egypt became more prosperous. Egypt continues to receive modest food assistance through the World Food Program and from France.