Most Egyptians today are Muslims therefore they do not celebrate christmas as such although they do commemorate the birth of Jesus, but they  celebrate the festivals Eid-ul-Fitr and Eid-Ul-Adha.
However there are Egypt’s Christian copts who celebrate christmas on the 7th of January.

The Coptic Church is an Orthodox Church and in the Coptic Church Christmas is celebrated on the 7th January. Advent is observed for forty days and during this period people are expected to fast eating no meat, poultry or dairy products. Those who are unable to fast for such a long period often observe it during last week.

Coptic Christian

On the Eve of Christmas everyone goes to church wearing a completely new outfit. The Christmas service ends at midnight with the ringing of church bells and people go home after they receive the special bread called ‘qurban’  (meaning sacrifice) at the end of the service. This bread has a Holy Cross in the middle and 12 dots to represent the 12 apostles. 

Fata

Once home the people eat a special Christmas meal known as fata, which consists of bread, rice, garlic and boiled meat.

On Christmas morning people in Egypt visit friends and neighbours, taking with them kaik which is a type of shortbread and shortbat which is a drink.

Since christians believe that Jesus, Mary and Joseph fled to Egypt for fear of Herod’s plan, the coptic churches are decorated with candles and lamps on Christmas to remind the coptic christians of when Joseph lit candles to keep Mary warm during the birth of Jesus.

 In Egypt traditions are influenced by regional culture throughout Egypt so there are some differences depending on place.