According to the bible, where did egypt arise from? How was Egypt created according to the bible? Was it started by descendants of Cain? The descendants of Seth started the Israelites and Canaanites if I'm not mistaken.
According to the Table of Nations in Genesis 10, the Egyptians are descended from Ham (the son of Noah):


  The sons of Ham were Cush and Mizraim and Put and Canaan. - Genesis 10:6 NASB


Mizraim is the Hebrew word for the nation of Egypt, in fact a number of versions translate this verse as such, eg:


  The sons of Ham: Cush, Egypt, Put and Canaan. - Genesis 10:6 NIV