Hasan arrives at the Egyptian capital of Cairo. He reflects on how God had ordained that he arrive in time to see the end of Egypt’s empire and its conquest by the Ottoman Empire. In the meantime, however, Hasan learns that Cairo is being hit by a plague.

People in Cairo are dying from the plague. The Sultan of Egypt, Qansuh, only responds by banning wine, hashish, and dealings with prostitutes. Even worse, Qansuh takes advantage of the plague by selling grain to other countries, causing the price to rise. Meanwhile, Hasan meets a young Coptic merchant leaving Cairo with his family to the southern Egyptian town of Assyut. While he is gone, he offers to let Hasan live in his house. Hasan sets about establishing his business in Cairo.

Hasan hears the story of how Qansuh tried to extort money out of the caliph, a prominent religious leader. When the caliph abdicated, Qansuh was suddenly struck by a mysterious illness that blinded him. Believing his blindness was a curse from God, Qansuh canceled most taxes, distributed alms to the poor, and freed numerous prisoners. Then he had the qadis, religious leaders in Egypt, pray for him to be healed.