The 35 ministers, including three deputy prime ministers, were sworn in by interim President Adly Mansour, and in the presence of caretaker Prime Minister Hazem al-Beblawi in a brief ceremony that was telecast live tonight.
The cabinet includes mostly technocrats and liberals. Three women were among the ministers sworn in.
The swearing in came almost two weeks after 61-year-old Morsi, Egypt's first democratically elected president, was toppled by the powerful military on July 3.
His overthrow after massive nationwide protests demanding his resignation plunged the most populous Arab country into turmoil, with Islamist supporters of Morsi organising rallies demanding his reinstatement.
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The Muslim Brotherhood has refused to join the interim government headed by al-Beblawi. Ultra-conservative Islamist party Al-Nur kept itself away from the new cabinet.
Meanwhile, in a major crackdown on Morsi's supporters, Egyptian authorities arrested 401 people after violent clashes between police and the ousted Islamist leader's followers here claimed seven lives.
The violence came as US Assistant Secretary of State William Burns, the highest American official to visit Cairo following Morsi's ouster, urged divided Egyptian leaders to engage in dialogue and end violence.