A limited reshuffle to allow Sisi to step down as defence minister and enter elections had been expected, but the across-the-board resignations led by the increasingly unpopular prime minister Hazem al-Beblawi surprised even some in the cabinet.
Appointed in July after the military ousted Islamist president Mohamed Morsi, Beblawi's government came under pressure to step aside amid a worsening economy and a spate of militant attacks and labour strikes.
The resignations yesterday might lead to a new cabinet without the baggage of Beblawi's government ahead of Sisi's expected run in the presidential election this spring.
The field marshal, who is the defence minister and first deputy prime minister in the outgoing cabinet, has to resign from the government and the army before he can officially announce his candidacy.
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Beblawi defended the government's performance in an address announcing the resignations.
"The government assumed its responsibilities and duties... the government did not spare any efforts to get Egypt out of a bad phase," Beblawi said.
The cabinet said in a statement it resigned "in light of the current situation that the country is going through."
The mass resignations could have been triggered by the pressure on Beblawi himself to step down.
"If the prime minister resigns, then the whole cabinet resigns," Mustapha Kamel al-Sayyid, a political science professor at Cairo University, said.
The resignations could work in Sisi's favour, he added.