Egypt's economy depends mainly on agriculture, media, petroleum exports, and tourism; there are also more than three million Egyptians working abroad, mainly in Saudi Arabia, the Persian Gulf and Europe. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly-growing population, limited arable land, and dependence on the Nile all continue to overtax resources and stress the economy.

The government has struggled to prepare the economy for the new millennium through economic reform and massive investments in communications and physical infrastructure. Egypt has been receiving U.S. foreign aid (since 1979, an average of $2.2 billion per year) and is the third-largest recipient of such funds from the United States following the Iraq war. Its main revenues however come from tourism as well as traffic that goes through the Suez Canal.

Egypt has a developed energy market based on coal, oil, natural gas, and hydro power. Substantial coal deposits are in the north-east Sinai, and are mined at the rate of about 600,000t per year. Oil and gas are produced in the western desert regions, the Gulf of Suez, and the Nile Delta. Egypt has huge reserves of gas, estimated at over 1.1 million cubic meters in the 1990s, and LNG is exported to many countries.

Economic conditions have started to improve considerably after a period of stagnation from the adoption of more liberal economic policies by the government, as well as increased revenues from tourism and a booming stock market. In its annual report, the IMF has rated Egypt as one of the top countries in the world undertaking economic reforms. Some major economic reforms taken by the new government since 2003 include a dramatic slashing of customs and tariffs. A new taxation law implemented in 2005 decreased corporate taxes from 40% to the current 20%, resulting in a stated 100% increase in tax revenue by the year 2006.

FDI (Foreign Direct Investment) into Egypt has increased considerably in the past few years due to the recent economic liberalization measures taken by minister of investment Mahmoud Mohieddin, exceeding $6 billion in 2006. Egypt is slated to overcome South Africa as the highest earner of FDI on the African continent in 2007.

Although one of the main obstacles still facing the Egyptian economy is the trickle down of the wealth to the average population, many Egyptians criticize their government for higher prices of basic goods while their standards of living or purchasing power remains relatively stagnant. Often corruption is blamed by Egyptians as the main impediment to feeling the benefits of the newly attained wealth. Major reconstruction of the country's infrastructure is promised by the government, with a large portion of the sum paid for the newly acquired 3rd mobile license ($3 billion) by Etisalat. This is slated to be pumped into the country's railroad system, in response to public outrage against the government for disasters in 2006 that claimed more than 100 lives.

The best known examples of Egyptian companies that have expanded regionally and globally are the Orascom Group and Raya. The IT sector has been expanding rapidly in the past few years, with many new start-ups conducting outsourcing business to North America and Europe, operating with companies such as Microsoft, Oracle and other major corporations, as well as numerous SME's. Some of these companies are the Xceed Contact Center, Raya Contact Center, E Group Connections and C3 along with other start ups in that country. The sector has been stimulated by new Egyptian entrepreneurs trying to capitalize on their country's huge potential in the sector, as well as constant government encouragement.

Demographics
Egyptian farm.
Egyptian farm.

Main articles: Demographics of Egypt and Egyptians

Egypt is the most populous country in the Middle East and the second-most populous on the African continent, with an estimated 78 million people. Almost all the population is concentrated along the banks of the Nile (notably Cairo and Alexandria), in the Delta and near the Suez Canal. Approximately 90% of the population adheres to Islam and most of the remainder to Christianity (primarily the Coptic Orthodox denomination).[60] Apart from religious affiliation, Egyptians can be divided demographically into those who live in the major urban centers and the fellahin or farmers of rural villages.

The last 40 years have seen a rapid increase in population due to medical advances and massive increase in agricultural productivity[61] made by the Green Revolution.[62]

Egyptians are by far the largest ethnic group in Egypt at 97-98% (about 76.4 million) of the total population.[60] Ethnic minorities include the Bedouin Arab tribes living in the eastern deserts and the Sinai Peninsula, the Berber-speaking Siwis (Amazigh) of the Siwa Oasis, and the ancient Nubian communities clustered along the Nile. There are also interspersed communities of Beja concentrated in the south-eastern-most corner of the country, and a number of Dom clans mostly in the Nile Delta and Faiyum who are progressively becoming assimilated as urbanization increases.

Egypt also hosts an unknown number of refugees and asylum seekers. According to the UNDP's 2004 Human Development Report, there were 89,000 refugees in the country,[63] though this number may be an underestimate. There are some 70,000 Palestinian refugees,[63] and about 150,000 recently arrived Iraqi refugees,[64] but the number of the largest group, the Sudanese, is contested.[65] The once-vibrant Jewish community in Egypt has virtually disappeared, with only a small number remaining in the country, but many Egyptian Jews visit on religious occasions and for tourism. Several important Jewish archaeological and historical sites are found in Cairo, Alexandria and other cities.

Religion
Cairo's unique cityscape with its ancient mosques
Cairo's unique cityscape with its ancient mosques