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Nubians are native to the south of Egypt, but are now found in Cairo and elsewhere in Egypt, and in Sudan. Folk music can still be heard, but the migration and intercultural contact has produced new innovations. Ali Hassan Kubans jazz fusions have made him a regular on the world music scene, while Mohamed Mounir's social criticism and sophisticated pop have made him a star among Nubians and others worldwide. Hamza el Din is, however, the most famous Nubian singer, well-known on the world music scene and has collaborared with the Kronos Quartet.

The Arab conquest of Egypt took place in AD 641. Although the Imperial forces resisted the Arab army under Amr ibn al-As, the majority of the civilian population, having suffered persecution for the differing Christian beliefs, were less hostile; in some cases they welcomed their new masters. Considered "People of the Book", Christians were allowed to practice their religion, under the restrictions of the Islamic Shari'a law.

Crude oil production has been in decline for several years, from 45,200,000 t in 93/94 to 37,000,000 t in 99/00. Oil production in late 2001 was about 118,000 m³ (740,000 barrels) per day. To minimize the growing domestic demand of petroleum products (approximately 23 mmt) Egypt is encouraging the production of natural gas. Natural gas output continues to increase and reached 18 mmt of oil equivalents in 2001.

The League of Arab States headquarters is in Cairo. The Secretary General of the League has traditionally been an Egyptian. Former Egyptian Foreign Minister Amr Moussa is the present Secretary General of the Arab League.

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 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.

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.

Approximately one-third of Egyptian labor is engaged directly in farming, and many others work in the processing or trading of agricultural products. Practically all Egyptian agriculture takes place in some 25,000 km² (6 million acres) of fertile soil in the Nile Valley and Delta. Some desert lands are being developed for agriculture, including the ambitious Toshka project in Upper Egypt, but some other fertile lands in the Nile Valley and Delta are being lost to urbanization and erosion.

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."

Egypt is the most populous Arab country, at about 68,000,000 people. Nearly all the population is concentrated along the River Nile, notably Alexandria and Cairo, and along the Nile Delta and near the Suez Canal. Approximately 90% of the population adheres to Islam and the remainder to Christianity (primarily the Coptic faith).

Islamists rejected Marxism and Western capitalism. Indeed, they viewed atheistic communism, Jewish Zionism, and Western "Crusader-minded" Christianity as their main enemies, which were responsible for the decadence that led to foreign domination and defeat by Zionists. They were intolerant of people who did not share their worldview. Islamists tended to be hostile toward the orthodox ulama, especially the scholars at Al Azhar who frequently criticized the Islamists' extreme religious interpretations. Islamists believed that the established social and political order had tainted the ulama, who had come to represent stumbling blocks to the new Islamic order. In addition, Islamists condemned the orthodox as "pulpit parrots" committed to a formalist practice of Islam but not to its spirit.

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.

Following the September 11, 2001 terrorist attacks on the United States, Egypt, which has itself been the target of terrorist attacks, has been a key supporter of the U.S. war against terrorists and terrorist organizations such as Osama bin Ladin and al-Qaeda, and has supported the Iraqi Governing Council.

The national government of Egypt is divided into an executive branch, a legislative branch and a judiciary branch. The Constitution grants wide powers to the executive. The President of Egypt heads the executive branch. The President’s powers stem from his ability to appoint the powerful prime minister and one or more Vice-Presidents. However, the President’s choice of the prime minister has to yield and maintain the approval the People’s Assembly (Majilis Al-Sha’ab), the lower house of Parliament.

Various Islamist groups espoused different means for achieving their political agenda. All Islamists, however, were concerned with Islam's role in the complex and changing society of Egypt in the late twentieth century. A common focus of their political efforts has been to incorporate the Shari'a into the country's legal code. In deference to their increasing influence, the Ministry of Justice in 1977 published a draft law making apostasy by a Muslim a capital offense and proposing traditional Islamic punishments for crimes, such as stoning for adultery and amputation of a hand for theft. In 1980 Egypt supported a referendum that proposed a constitutional amendment to make the Shari'a "the sole source of law." The influence of the Islamists temporarily waned in the aftermath of Sadat's assassination in 1981, but the election of nine members of the Muslim Brotherhood to the People's Assembly in 1984 revived Islamists' prospects. In 1985 the People's Assembly voted to initiate a procedure for the gradual application of the Shari'a, beginning with an indefinite education period to prepare the population for the legal changes; the next step would be to amend all existing laws to exclude any provisions that conflict with the Shari'a. Moves to reform the legal code received support from many Muslims who wanted to purify society and reject Western legal codes forced on Egypt in the nineteenth and twentieth centuries