Prosecutors said police had arrested the driver after a preliminary drug test suggested he had been driving under the influence of narcotics.
They said he was also suspected of using a mobile phone at the wheel at the time of accident.
Emergency crews recovered the heavily damaged minibus from the canal, an AFP photographer reported.
Traffic accidents are common in Egypt where roads are often poorly maintained and driving rules flouted.
In 2021, around 7,000 people were killed on the roads of the Arab world’s most populous country, according to official figures.
In July, 25 people died and 35 were injured in central Egypt when a bus crashed into a truck parked on the side of the road.