The death of Tawfīq and the accession of his 17-year-old son, ʿAbbās II (Ḥilmī), in 1892 opened a new phase of opposition to the occupation. The new khedive would not submit to Cromer’s tutelage, while the British agent resented the attempts of one so much his junior to play a serious role in Egyptian politics. ʿAbbās dismissed Muṣṭafā Fahmī in January 1893 and tried to appoint his own nominee as prime minister. Cromer, backed by the British government, frustrated these endeavours, and Fahmī eventually returned to office. ʿAbbās provoked another crisis in January 1894 by publicly criticizing British military officers, especially Horatio Herbert Kitchener, the sirdar (commander in chief). Once again Cromer stepped in and forced ʿAbbās to make a public apology.

Other considerations apart, the behaviour of ʿAbbās in the early years of his reign indicated the emergence of a new generation who had only been children when the occupation began. One of ʿAbbās’s contemporaries was Muṣṭafā Kāmil (1874–1908), who had studied in France and come to know a group of writers and politicians opposed to the British occupation. On returning to Egypt in 1894, he had reached an understanding with the khedive on the basis of their common opposition to the British occupation. By his speeches and writings (in 1900 he founded his own newspaper, Al-Liwā), he endeavoured to create an Egyptian patriotism that would rally the entire nation around the khedive. A boost was given to nationalism by the campaigns for the reconquest of the Sudan (1896–98)—to which Egypt provided most of the money and troops, although the commanding officers were British—and by the 1899 Anglo-Egyptian Condominium Agreements, which nominally gave Egypt and Britain joint responsibility for the administration of the reconquered territory but in effect made the Sudan a British possession.

A final episode in the reconquest of the Sudan, the confrontation of British and French at Fashoda on the White Nile in 1898 (the Fashoda Incident), was followed by the reconciliation of the two powers in the Entente Cordiale (1904), which, inter alia, gave Britain a free hand in Egypt. This deflated the hopes of Muṣṭafā Kāmil and his alliance with the khedive, who became more willing to cooperate with Cromer. Muṣṭafā Kāmil now turned to Sultan Abdülhamid. When a dispute (the Tābah Incident, 1906) arose between the Ottomans and the occupying power over the Sinai Peninsula, Muṣṭafā Kāmil sought to rally Egyptian nationalist opinion in favour of the sultan, but some Egyptians accused him of harming their national interest in order to favour Islamic unity.

British domination in Egypt and Cromer’s personal ascendancy never seemed more secure than in the period following the Entente Cordiale. But the “veiled protectorate” had hidden weaknesses. Cromer was both out of touch and out of sympathy with the new generation of Egyptians. The occupation had become to all intents and purposes permanent, and the consequent growth of the British official establishment frustrated educated Egyptians, who sought government posts for themselves and their sons. The British, however, saw themselves as the benefactors of the Egyptian peasantry, whom they had delivered from the corvée and the lash. The Dinshawāy Incident showed them in another light. In June 1906 a fracas between villagers at Dinshawāy and a party of British officers out pigeon shooting resulted in the death of a British officer. The special tribunal set up to try the matter imposed exemplary and brutal sentences on the villagers. In the bitter aftermath of this affair, which strengthened Muṣṭafā Kāmil’s nationalists, Cromer retired in May 1907.

Sir Eldon Gorst, who succeeded Cromer, had served in Egypt from 1886 to 1904 and brought a fresh mind to bear on the problems of the occupation. He reached an understanding with the khedive and sought to diminish the growing power and numbers of the British establishment. At the same time, he tried to give more effective authority to Egyptian political institutions. Muṣṭafā Fahmī’s long premiership ended, and he was followed by a Copt, Buṭrus Ghālī. When Gorst died prematurely in July 1911, he had attained only limited success. Many British officials resented his policies, which at the same time failed to conciliate the nationalists. Muṣṭafa Kāmil had died in 1908 and had been succeeded by Muḥammad Farīd, who led the National Party toward greater extremism in its opposition to the British. A project to extend the Suez Canal Company’s 99-year concession by 40 years was thrown out by the General Assembly (a quasi-parliamentary body, set up in 1883), while Buṭrus Ghālī, who had advocated it, was assassinated a few days later by a nationalist. The appointment of Lord Kitchener to succeed Gorst portended the end of conciliation of the khedive. But Kitchener, although autocratic, was not wholly conservative; his attempts to limit the power and influence of ʿAbbās served the interests of the moderate Egyptians who did not belong to the National Party. The Organic Law of 1913 created a new and more powerful Legislative Assembly that served as a training ground for the nationalist leaders of the postwar period. At the same time, the peasants were helped by improved irrigation and by legal protection of their landholdings from seizure for debt.