Supporters of el-Sissi, who as defense minister led the ouster of Mohammed Morsi, planned to hold rallies later in the day to mark the occasion. Rallies by pro-government supporters are routinely held under police protection and attract small numbers.
But the holiday mood was ruptured by reports from Egypt's restive Sinai Peninsula, where Islamic militants on Thursday gunned down a Christian priest and two members of the country's security forces in separate attacks, according to security and medical officials.
El-Sissi announced his ouster on July 3, 2013, and authorities later detained thousands of Morsi supporters and banned his Muslim Brotherhood as a terrorist group. Morsi, who has since been in custody, has been sentenced to death in one trial and long prison terms in several others. Convicted on a range of charges, including a prison break, leaking secret documents and conspiring with foreign terror groups against Egypt, he is appealing his convictions.
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In the ancient southern city of Luxor, hot-air balloons carrying Egyptian flags flew over pharaonic temples and authorities plan a parade along the River Nile.
"On this glorious day, I would like to assure you that we are working hard to realize the hopes of the Egyptian people for the better future they deserve," el-Sissi, elected to office two years ago, said in a pre-recorded address to the nation broadcast today.
Yesterday, he appealed to security forces and agencies to stop anyone from "spoiling" the occasion. He did not elaborate, but he appeared to be referring to possible protests by Morsi supporters or attacks by Islamic militants.
Egyptian security forces have been battling militants for years in Sinai, but attacks have grown deadlier and more frequent after Morsi's ouster.
Today's attacks, the priest, Mussa Azmy, was gunned down while walking in the city of el-Arish near his house. The Sinai affiliate of the Islamic State claimed responsibility for the killing in a brief statement posted on social media websites sympathetic to the extremist group. It said the priest was a "warrior against Muslims.