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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.

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 Egyptians are a fairly homogeneous people. Mediterranean and Arab influences appear in the north, and there is some mixing in the south with the Nubians of northern Sudan. Many theories has been proposed on the origins of the Egyptians, however non are conclusive, and the most widely accepted theory is that Egyptian society was the result of a mix of east african and asiatic people who moved to the Nile Valley after the ice age. The bulk of Modern Egyptian society still maintains a homogenous genetic tie to the ancient Egyptian society which has always been regarded as rural and most populous compared to the neighboring demographics. The Egyptian people spoke only languages from the Afro-Asiatic family (previously known as Hamito-semitic) throughout their history starting with Old Egyptian, to modern Arabic.

In Egypt, the dead were originally not mummified with the extensive process that happened during the first dynasty. The dead were originally buried in reed caskets in the sand. The searing hot sand caused the remains to dry quickly, preventing decomposition. After a while, though, they started constructing wooden tombs, and the extensive process of mummification was made so that the bodies would not decompose in the afterlife.

The literacy rate is about 55% of the adult population. Education is free through university and compulsory from ages six through 15. Rates for primary and secondary education have strengthened in recent years. Ninety-three percent of children enter primary school and about one-quarter drop out after the sixth year; in 1994-95, 87% entered primary school and about half dropped out after the sixth year. There are 20,000 primary and secondary schools with some 10 million students, 13 major universities with more than 500,000 students, and 67 teacher colleges. Major universities include Cairo University (100,000 students), Alexandria University, and the 1,000-year-old Al-Azhar University, one of the world's major centers of Islamic learning.

Egypt played a key role during the 1990-91 Gulf crisis. President Mubarak helped assemble the international coalition and deployed 35,000 Egyptian troops against Iraq to liberate Kuwait. The Egyptian contingent was the third largest in the coalition forces, after the U.S. and U.K. In the aftermath of the Gulf war, Egypt signed the Damascus declaration with Syria and the Gulf states to strengthen Gulf security. Egypt continues to contribute regularly to United Nations peacekeeping missions, most recently in East Timor, Sierra Leone, and Liberia.

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.

Islam in Egypt came to the country with the successors of Mohammed, and is today the dominant faith with 90% of the population adherents, almost all of the Sunni denomination

Archeological findings show that primitive tribes lived along the Nile long before the dynastic history of the pharaohs began. By 6000 B.C., organized agriculture had appeared.

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 played an important role in the negotiations leading to the Madrid Peace Conference in 1991, which, under United States and Russian sponsorship, brought together all parties in the region to discuss Middle East peace. This support has continued to the present, with President Hosni Mubarak often intervening personally to promote peace negotiations. In 1996, he hosted the Sharm El-Sheikh "Summit of the Peacemakers" attended by President Bill Clinton and other world leaders. In 2000, he hosted two summits at Sharm El-Sheikh and one at Taba in an effort to resume the Camp David negotiations suspended in July of 2000, and in June 2003, Mubarak hosted President George W. Bush for another summit on Middle East peace process.

By some accounts there are more than 40 million Coptic Orthodox Christians in the world: they are found primarily in Egypt (roughly 10 million), Ethiopia (roughly 30 million), and Eritrea (roughly 2 million), but there are significant numbers in Sudan and Israel, and in diaspora throughout the world. However, as applied to the Tewahedo Church of Ethiopia, which before 1950 was a part of the Coptic Church of Egypt, the word Coptic can be considered a misnomer because it means Egyptian. The Eritrean Orthodox Church similarly became independent of the Tewahedo Church during the 1990s. These three churches remain in full communion with each other and with the other Oriental Orthodox churches.

The Egyptian system for presidential election is regarded by many as not being fully democratic due to the fact that it is the People’s Assembly and not the populace itself, who retains the upper-hand in choosing the Chief of State. In addition, it allows for whatever party or coalition controlling the People’s Assembly to put forward their candidate as the presidential candidate. This greatly explains how in most of the 1980s and 1990s the National Democratic Party has managed to maintain the office of President and a parliamentary majority.

Belly dance, or Raqs Sharqi in Arabic, may have originated in Egypt, and today the country is considered the international center of the art.