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Popular Islam ranges from informal prayer sessions or Qur'an study to organized cults or orders. Because of the pervasive sexual segregation of Egypt's Islamic society, men and women often practice their religion in different ways. A specifically female religious custom is the zar, a ceremony for helping women placate spirits who are believed to have possessed them. Women specially trained by their mothers or other women in zar lore organize the ceremonies. A zar organizer holds weekly meetings and employs music and dance to induce ecstatic trances in possessed women. Wealthy women sometimes pay to have private zars conducted in their homes; these zars are more elaborate than public ones, last for several days, and sometimes involve efforts to exorcise spirits.

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.

Over the last 20 years, more than 217 oil exploration agreements have been signed and multinational oil companies spent more than $27 billion in exploration companions. These activities let to the findings of about 18 crude oil fields and 16 natural gas fields. As a result of these findings, crude oil reserves as of September 2001 are estimated at 445 million m³ (2.8 billion barrel), and proven natural gas reserves are 1,600 km³ (55 trillion ft³) with a likely additional 1,800 km³ (65 trillion ft³). Texas-based Apache Oil Company is the largest American investor in Egypt, with a total investment of more than $1.6 billion since 1996.

The Muslim Brotherhood's reemergence as a political force coincided with the proliferation of Islamic groups. Some of these groups espoused the violent overthrow of the government while others espoused living a devout life of rigorous observance of religious practices. It is impossible to list all the Islamic groups that emerged in the late 1970s because many of them had diffuse structures and some of the more militant groups were underground. Egypt's defeat and loss of territory in the June 1967 Six-Day War was the main cause for the growth of religiously inspired political activism. Muslims tended to view the humiliating experience as the culmination of 150 years of foreign intrusion and an affront to their vision of a true Islamic community. Islamic tradition rejected the idea of non-Muslims dominating Muslim society. Such a state of affairs discredited Muslim rulers who permitted it to persist. It was, therefore, incumbent on believers to end the domination and restore the true supremacy of Islam. As part of their Sunni creed, the most radical activists adopted jihad and committed themselves to battling unbelievers and impious Muslims. During the 1970s and 1980s, Islamists perpetrated a number of violent acts, including the assassination of Anwar Sadat in October 1981.

Egypt's largely uneducated urban and rural lower classes were intensely devoted to Islam, but they lacked a thorough knowledge of the religion. Even village religious leaders had only a rudimentary knowledge of Islam. The typical village imam or prayer leader had at most a few years of schooling; his scholarly work was limited to reading prayers and sermons prepared by others and to learning passages from the Qur'an. Popular religion included a variety of unorthodox practices, such as veneration of saints, recourse to charms and amulets, and belief in the influence of evil spirits.

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".

The Egyptians also expanded the practice of mummification to animals. Sacred animals central to cults, such as ibis, hawks, and cats, were mummified by the thousands.

Egyptian monasticism attracted the attention of Christians in other parts of the world, who visited Egypt, many bringing monastic ideas home with them, and spreading monasticism through the Christian world. Saint Basil, organizer of the monastic movement in Asia Minor visited Egypt around AD 357 and his rule is followed by the eastern Churches; Saint Jerome, en route to Jerusalem, stopped in Egypt and left details of his experiences in his letters; Saint Benedict founded monasteries in the 6th century on the model of Pachomius, but in a stricter form.

Popular Islam is based mostly on oral tradition. Imams with virtually no formal education commonly memorize the entire Qur'an and recite appropriate verses on religious occasions. They also tell religious stories at village festivals and commemorations marking an individual's rites of passage. Predestination plays an important role in popular Islam. This concept includes the belief that everything that happens in life is the will of God and the belief that trying to avoid misfortune is useless and invites worse affliction. Monotheism merges with a belief in magic and spirits (jinns) who are believed to inhabit the mountains.

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 vast and rich literature constitutes an important cultural element in the life of the country and in the Arab world as a whole. Egyptian novelists and poets were among the first to experiment with modern styles of Arabic literature, and the forms they developed have been widely imitated. Egyptian novelist Naguib Mahfouz was the first Arab to win the Nobel Prize in Literature. Egyptian books and films are available throughout the Middle East.