Ancient Egyptians exchanged commercial goods with other countries during Pharaonic times; while the state tried to control and profit from that trade. The local products covered the needs of the Egyptians, except for wood, minerals and semiprecious stones imported from Asian countries; and incense, spices and perfumes imported from Nubia and Punt (Somalia, most likely). The massive domestic surplus, produced by papyrus and wheat, was exported to other countries.
Egypt used to control most of the trade routes and the garrisons were occupying its length. The border castles have had a major impact on trade between Egypt and other neighboring nations. As for internal trade, the Egyptians were moving between villages and cities, taking advantage of the ease of transportation across the river. The bridges built on the Nile and the canals allowed pedestrians to pass through. Mules, donkeys and boats were daily means of transport on land, or on the river. Horse-drawn vehicles began to be used during the New Kingdom era, but only the elite were the ones who owned and used them.
Since the Pharaonic times, internal trade in Egypt has been established in the markets; public places where traders have met for one day. Every city and village may have a specific day when people go shopping. Trafficking was through barter, through which commodities were exchanged.
Despite the entry of money into the Ptolemaic period, barterism was common in agricultural societies for centuries. The Greeks had abundant silver mines, enabling them to instrument and use silver coins, which became the means of global trade. The coins minted in Egypt were made of gold, with a fee for a dancing dancer on one side, while the inscription "Good gold" appeared on the other. The silver coin industry also flourished; although the oldest of these coins dates back to Alexander the Great himself. The influence of the financial currencies on the local economy may have been soft, until the time of the Roman era; when European practices such as interest payments became mandatory, wealth hoarding became possible.
In the Ptolemaic era, Egypt became a major trading center; when the ancient canal connecting the Nile with the Gulf of Suez was reopened during the reign of King Senusert II. Alexandria became a global seaport with a fleet of twenty ships. Alexandria has established effective trade links with cities and ports on the Mediterranean Sea. Oil, wool, glass, pottery, wine and small pieces of art were the most important goods exported by Egypt during that era. Egypt was not only interested in exporting its products, but was importing a lot of raw materials for re-export at higher prices to the countries of the Mediterranean basin. As trade flourished in the north, Egypt had similar activity on the Red Sea, which was a major source of spices and ivory. That trade flourished following the discovery of the Indian merchant, Hibalus, of the Indian Ocean monsoon in the first century BC. Then, traders move across the ocean directly, marching through the exit of the Red Sea and the mouth of the Sind River, instead of passing their ships along the Red Sea as the former did during the Pharaonic times.
During the late era, Phoenicians and Greeks dominated world trade; after establishing colonies along the shores of the Mediterranean. After the establishment of Alexandria, this Hellenic city became a center for the exchange of knowledge and goods for the Near East. During the Roman era, individuals freely practiced trade and were no longer monopolized by the State; except for certain strategic goods such as wheat and papyrus. The situation remained the same during the periods of the rule of the rulers of the Muslims; where the Arabs trade in nature, traders raised to the upper classes of society. The Arabs recognized the commercial importance of Egypt as a center of convergence between East and West. This, in fact, led them to exploit their location; through paving roads and harbor care. The Caliph Umar ibn al-Khattab reopened the channel, which comes from the north of Memphis to meet the Red Sea, linking it with the Mediterranean Sea. This channel was then called "Gulf of the Faithful"
