My search for Egyptian hip-hop has not been too successful. I'm not sure what the word for rap is in Arabic so I've started to ask for Egyptian Eminem or 50 Cent. Apparently they've made it to Egypt. Still I've gotten some good music. It's a little hit or miss especially since nearly every song has Habibi in it, and I don't speak much more Arabic than the word Habibi.
From what I can tell/gathered from the music shops is that there are a few big names in modern Egyptian music. There is definitely an underground scene with some hip hop, but it's all in Cairo.

Mohamed Mounir - Weily