The author raises the question of how to establish modern Arab-Islamic states that can face the challenges they are exposed to and concentrates on the Egyptian society. To achieve this modern state, it is either to replace Arab-Islamic values with Western values– which is disastrous, or to create new values – which is impossible. The only possible solution is to develop and modernize already existing Arab-Islamic values. However, such thing should not be done collectively but on the level of each country independently according to its cultural and ideological structure. Doing that does not mean crossing out the concepts of Arabism and the Islamic Umma.