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Like African music, Arabic and Egyptian music has strong improvisatory and rhythmic components. The base rhythm of Arabic music is the maqamat, which is formed by dum (downbeats), tak (upbeats) and rests. Arabic music uses microtones, or notes not present in the formal musical scale (half-flats and half-sharps). Arabic tones are divided into thirds, which makes their sound inherently different from most other musical traditions.

Today devout Muslims believe that Islam defines one's relationship to God, to other Muslims, and to non-Muslims. They also believe that there can be no dichotomy between the sacred and the secular. Many devout Muslims say that Egypt's governments have been secularist and even antireligious since the early 1920s. Politically organized Muslims who seek to purge the country of its secular policies are referred to as "Islamists."

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.

In Egypt, religious music is frowned upon, but still common in Muslim celebrations called mulids. Mulids are held to celebrate the saint of a particular mosque, and is related to the Sufi zikr ritual. A type of flute called the ney is commonly played at mulids.

In the last quarter of the 20th century, Egyptian music was a way to communicate social and class issues. One popular modern pop singer is Amr Diab.