How did low tariffs help Egypt become a major center of international trade?

The Fatimid dynasty’s policy of low tariffs was a key factor in transforming Egypt into a major international trade hub. By maintaining low tariffs and practicing noninterference in the affairs of merchants, the Fatimid government created an environment that encouraged commerce and attracted international traders.1

This economic strategy, combined with the political stability provided by a strong central government, allowed Egypt to offer an attractive alternative to traditional trade routes that were declining in Iraq, Mesopotamia, and Syria. Furthermore, the Fatimids secured control over the Red Sea and maintained a powerful navy in the eastern Mediterranean, which facilitated the transit of goods between the Eastern and Western worlds. These efforts, alongside increased mercantile activity from European cities, successfully restored Egypt as a great international entrepôt.1