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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.

Among the modern talents of Egyptian literature, Naguib Mahfouz is foremost. In 1988, he was awarded the Nobel Prize for Literature. Other well-known Egyptian writers include Nawal El Saadawi, who is well known for her feminist works and activism, and Alifa Rifaat who is conservative and writes about women and tradition

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.

The permanent headquarters for the League of Arab States is located in Cairo. Egypt was the first Arab state to establish peace with the State of Israel after the signing of the Israel-Egypt Peace Treaty after the Camp David Accords

Before the construction of dams on the Nile, particularly the Aswan High Dam (started in 1952, completed in 1970), the fertility of the Nile Valley was sustained by the water flow and the silt deposited by the annual flood. Sediment is now obstructed by the Aswan High Dam and retained in Lake Nasser. The interruption of yearly, natural fertilization and the increasing salinity of the soil has been a manageable problem resulting from the dam. The benefits remain impressive: more intensive farming on thousands of square kilometres of land made possible by improved irrigation, prevention of flood damage, and the generation of millions of gigajoules of electricity at low cost.

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's foreign policy operates along a non-aligned level. Factors such as population size, historical events, military strength, diplomatic expertise and a strategic geographical position give Egypt extensive political influence in the Middle East and Northern Africa, and within the Nonaligned Movement as a whole. 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.

Warm weather and plentiful water permit several crops a year. Further improvement is possible, but land is worked intensively and yields are high. Cotton, rice, wheat, corn, sugarcane, sugar beets, onions, and beans are the principal crops. Increasingly, a few modern operations are producing fruits, vegetables and flowers, in addition to cotton, for export. While the desert hosts some large, modern farms, more common traditional farms occupy one acre (4,000 m²) each, typically in a canal-irrigated area along the banks of the Nile. Many small farmers also have cows, water buffaloes, and chicken, although larger modern farms are becoming more important.