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Cairo is the Present day capital of Egypt, but is not used by the Civilization at all during the game. The city was not built or named by the Ancient Egyptians, it was first named and built by the Islamic Caliphate as a new center for learning in Egypt after they razed Fustat to prevent it from being captured by the Crusaders.
The City however is the Capital City of the Ayyubid Dynasty in the Into the Renaissance Scenario from Gods and Kings, because Saladin used the city as the Capital of his empire. This is the only time in the game a city called Cairo is founded by an AI but Cairo is much more familiar to us as the present day Capital of Egypt.