Why was Al-Fustat important to trade during the Fatimid period?

During the Fatimid period, Al-Fustat served as the vital port city for the new capital, Cairo, and functioned as a major international entrepôt. Its importance to trade was driven by several key factors:1

• Strategic Location: As centralized power declined in Iraq, Mesopotamia, and Syria during the 9th and 10th centuries, traditional trade routes through those regions faltered. Al-Fustat provided an attractive, stable alternative for international transit trade between the Eastern and Western worlds.1
• Government Support: The Fatimid dynasty established a strong government that secured control over the Red Sea and maintained a powerful navy in the eastern Mediterranean, ensuring safe passage for merchants.1
• Economic Policy: The Fatimids actively encouraged commerce through a low-tariff policy and a stance of noninterference in the affairs of merchants conducting business in Egypt.1
• Industrial Base: The city’s long-standing prosperity was bolstered by a thriving local industry, particularly in fine glassware and ceramics, which complemented its role as a commercial hub.2

These conditions helped restore Egypt as a central link in global trade, particularly in the profitable spice trade.31