The market was built by Sultan Murad III in 1597 AD. The aim of building the market was to finance the expenses and construction of the new mosque located opposite the market, which was officially opened in 1664. It also remained the main center for the spice trade in Turkey in general and in Istanbul in particular for more than two centuries.

At first, the market was called the “New Bazaar,” then the Egyptian Bazaar, and it was called the Egyptian Market because of the import of coffee and spices from India and South Asia to Egypt and from there to Istanbul via the Mediterranean Sea.