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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.

There currently exist eighteen recognized political parties from across the political spectrum. The formation of political parties based on religion is prohibited by the Constitution. The official opposition and political pressure groups, like the Muslim Brotherhood, are active in Egypt and make their views public. They are represented at various levels in the political system. However, power is concentrated in the hands of the President of the Republic and the National Democratic Party which retains a super-majority in the People's Assembly.

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

According to a 1995 law, the application of family law, including marriage, divorce, alimony, child custody, inheritance, and burial, is based on an individual's religion. In the practice of family law, the State recognizes only the three "heavenly religions:" Islam, Christianity, and Judaism. Muslim families are subject to the Personal Status Law, which draws on Shari'a (Islamic law). Christian families are subject to canon law, and Jewish families are subject to Jewish law. In cases of family law disputes involving a marriage between a Christian woman and a Muslim man, the courts apply the Personal Status Law.

The Western Desert accounts for about two-thirds of the country's land area. For the most part, it is a massive sandy plateau marked by seven major depressions. One of these, Fayoum, was connected about 3,600 years ago to the Nile by canals. Today, it is an important irrigated agricultural area.

Partially independent from the UK in 1922, Egypt acquired full sovereignty following World War II. In 1952 a popularly-supported military coup d’état forced King Farouk I, a constitutional monarch, to abdicate in support of his son King Ahmed Fouad II. Finally the Egyptian Republic was declared on 18 June 1953 with Gen. Mohamed Naguib as the first President of the Republic.

Egypt has endured as a unified state for more than 5,000 years, and archeological evidence indicates that a developed Egyptian society has existed for much longer. Egyptians take pride in their pharaonic heritage and in their descent from what many consider mankind's earliest civilization. The Arabic word for Egypt is Misr, which originally connoted "civilization" or "metropolis".