The palace was most likely originally built in the mid-19th century and sold to Khedive Ismail in 1866 by his brother Mustafa Fazl Pasha.

[1] Under Khedive Tewfik, Koubbeh Palace was a venue for One Thousand And One Night celebrations, royal weddings, and a place where visiting dignitaries admired magnificent gardens.

[citation needed] When King Fouad I ascended Egypt's throne in 1917, Koubbeh became the official royal residence.

During his reign, King Fouad ordered enhancements and extensions to Koubbeh, including a six-meter wall around the 75-acre (300,000 m2), a new gate and an external garden.

These included a stamp collection, an 8,500-piece coin and medals collection, studded clocks and watches, in addition to many other antiquities including a pure gold coffee set and a 1906 Faberge egg that belonged to Tsar Nicholas II.