The authorities are battling a dogged insurgency in North Sinai, where jihadists have carried out regular attacks on security forces since the army ousted Islamist president Mohamed Morsi in July 2013.
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On October 24, a suicide bomber and gunmen killed 30 soldiers near the provincial capital of El-Arish.
The cabinet decided to extend the emergency by three months, including a night-time curfew between 7:00 pm (1700 GMT) and 6:00 am (0400 GMT).
The military is building a buffer zone along the border with Gaza to prevent militants infiltrating from the Palestinian enclave.