The early Fatimid khalifs ruled half the Muslim world, with Egypt forming the central portion of an empire that included North Africa, Sicily, Syria and western Arabia. Gohar , commander of the khalifal forces, built the city of Al-Qahira (the Triumphant) as a new capital in 969, its walls containing opulent palaces and the prestigious mosque-university of Al-Azhar. Khalif al-Muizz installed himself in the city and from there ruled the empire. Trade with India, Africa and Europe expanded, the burdensome tax system was abolished, and a vast multi-racial army that included Europeans, Berbers, Sudanese and Turks was formed.

 

Whereas Al-Muizz and his successor Al-Aziz were efficient and tolerant rulers, under whom Egypt's economy prospered and the arts flourished, the third khalif - Al-Hakim (996-1021) - was a mad and capricious despot. His laws outraged the population, while his support of Byzantine against Latin Christians, and destruction of the Church of the Holy Sepulchre in Jerusalem, later provided a pretext for the First Crusade. His mysterious disappearance was taken by his followers - he championed Shi'a against Sunni Islam - as proof of messianic stature.

By the long reign of Al-Hakim's grandson, Al-Mostansir (1035-94), decay had set in. The empire was largely controlled by army commanders, administration was chaotic and famine added to the troubles. A series of governors imposed control over the army and restored peace and prosperity to Egypt for a further hundred years, but the loss of Syria to the Seljuk Turks, and new forces in Europe, left the empire increasingly vulnerable.

The First Crusade (1097-99), and those that followed, were motivated as much by the desire to acquire estates as to restore Christian dominance to the Holy Land. Egypt, however, was not attacked until 1167, by which time the Crusader kingdom held the former Fatimid coastal area of Palestine. Outraged at the fraternization between Franks and Fatimids, the Seljuk Sultan, Nur al-Din, sent an expedition to Cairo to repel them. The sultan's deputy, Shirkoh, occupied Upper Egypt, while his nephew, Salah al-Din al-Ayyubi - known to Europe as Saladin - took possession of Alexandria.