ISIS's Egypt affiliate, Sinai Province or what ISIS terrorist group call "Velayat Sinai", claimed responsibility for the attack, which it described as a suicide bombing. Early reports said at least three of the dead were police.
The group has killed hundreds of soldiers and police since the army toppled ousted President Mohamed Mursi in 2013 after mass protests against his rule.
Egyptian President Abdel Fattah al-Sisi has said militants pose a grave threat to Egypt, the most populous Arab country.
But Mr Sisi dismissed an Islamic State affiliate's claim that it took down the Russian Metrojet plane that crashed in the Sinai Peninsula last week killing all 224 aboard.
A Russian airliner returning from a popular resort town in Egypt crashed shortly after takeoff on Saturday, killing all 224 people aboard.
Although experts believe “bomb” or inside blast factors could have responsible for Russian Plane Crash, in the early minutes after the crash ISIS by releasing Video claimed that shot down Russian passenger plane.