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A series of International Monetary Fund arrangements, coupled with massive external debt relief resulting from Egypt's participation in the Gulf War coalition, helped Egypt improve its macroeconomic performance during the 1990s. Through sound fiscal and monetary policies, Cairo tamed inflation, slashed budget deficits, and built up foreign reserves. Although the pace of structural reforms, such as privatization and new business legislation, has been slower than the IMF envisioned, Egypt's steps toward a more market-oriented economy have prompted increased foreign investment. Lower combined hard currency inflows - from tourism, worker remittances, oil revenues, and Suez Canal tolls - in 1998 and the first half of 1999 resulted in pressure on the Egyptian pound and sporadic dollar shortages, but external payments were not in crisis. Despite ample reserves, the Central Bank did not provide sufficient hard currency to commercial banks and Cairo restricted imports for a short period; these developments confirmed to some investors and currency traders that government financial operations lack sufficient coordination and openness. Monetary pressures have since eased, however, with the continued oil price recovery starting in mid-1999 and a moderate rebound in tourism. Increased gas exports are a major plus factor in future growth.

Egypt is often identified as the place of refuge that the Holy Family sought in its flight from Judea: "When he arose, he took the young Child and His mother by night and departed for Egypt, and was there until the death of Herod, that it might be fulfilled which was spoken by the Lord through the prophet, saying, Out of Egypt I called My Son" (Matthew 2:12-23). The Egyptian Church, which is now more than nineteen centuries old, was the subject of many prophecies in the Old Testament. Isaiah the prophet, in Chapter 19, Verse 19 says "In that day there will be an altar to the LORD in the midst of the land of Egypt, and a pillar to the LORD at its border."

The vast majority of Egypt's population inhabit the banks of the Nile river (about 40,000 kmē).Large areas of land are part of the Sahara Desert and are sparsely inhabited.

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.

Egyptian music is a rich mixture of indigenous, Arabic, African and Western influences.

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.

In Egypt, the dead were originally not mummified with the extensive process that happened during the first dynasty. The dead were originally buried in reed caskets in the sand. The searing hot sand caused the remains to dry quickly, preventing decomposition. After a while, though, they started constructing wooden tombs, and the extensive process of mummification was made so that the bodies would not decompose in the afterlife.

The Constitution provides for freedom of belief and the practice of religion; however, the Government places restrictions on this right. According to the Constitution, Islam is the official state religion, and Shari'a is the primary source of legislation; religious practices that conflict with the official interpretation of Shari'a are prohibited. However, since the Government does not consider the practice of Christianity or Judaism to conflict with Shari'a, for the most part members of the non-Muslim minority worship without legal harassment and may maintain links with coreligionists in other countries. Members of other religions that are not recognized by the Government, such as the Baha'i Faith, may experience personal and collective hardship.

Egyptian music began its recorded history in the 1910s, at the same time as composers like Sayed Darwish's first mixtures of traditional Egyptian and western musical forms. Since, some of the Arab world's biggest musical stars have been Egyptian, including Mohamed Abdel Wahab, Umm Kulthum, Amr Diab, Mohamed Al-Qasabji and Zakariyya Ahmad. Kulthum was especially popular, and is considered the most successful Egyptian recording artist in history. Most of these stars, including Kalthum, sang Arab classical music. Some, like Abd el-Halim Hafez, were associated with the nationalist revolution in 1952

As early as 4000 BC, ancient Egyptians were playing harps and flutes, as well as two indigenious instruments: the ney and the oud. However, there is no notation of Egyptian music before the 7th century AD, when Egypt became part of the Arab world. Percussion and vocal music became important at this time, which has remained an important part of Egyptian music today.

Egypt played a key role during the 1990-91 Gulf crisis. President Mubarak helped assemble the international coalition and deployed 35,000 Egyptian troops against Iraq to liberate Kuwait. The Egyptian contingent was the third largest in the coalition forces, after the U.S. and U.K. In the aftermath of the Gulf war, Egypt signed the Damascus declaration with Syria and the Gulf states to strengthen Gulf security. Egypt continues to contribute regularly to United Nations peacekeeping missions, most recently in East Timor, Sierra Leone, and Liberia.