EGYPTIAN President Mohamed Morsi has told supporters Egypt is on the path to "freedom and democracy," a day after he assumed sweeping powers in a move critics said made him a dictator.
"Political stability, social stability and economic stability are what I want and that is what I am working for," he told an Islamist rally outside the presidential palace.
Secular opponents staged a rival rally in Cairo's Tahrir Square to denounce Morsi's power grab.
"I have always been, and still am, and will always be, God willing, with the pulse of the people, what the people want, with clear legitimacy" he said from a podium before thousands of supporters.
Earlier, MENA news agency quoted him as saying: "No one can stop our march forward ... I am performing my duty to please God and the nation and I take decisions after I consult with everyone".
State media reported protesters had torched Muslim Brotherhood offices on Friday.
The offices of the Freedom and Justice Party (FJP), the Muslim Brotherhood's political arm, were set ablaze in the canal cities of Ismailiya and Port Said, it was reported.
An FJP official told AFP the party's office was also stormed in the Mediterranean city of Alexandria, where clashes broke out between rival demonstrators.
In Cairo, an array of liberal and secular groups, including activists at the forefront of the protest movement that forced veteran strongman Hosni Mubarak from power early last year, marched on Tahrir Square, Cairo's iconic protest hub, to demonstrate against the "new pharaoh".
Morsi's backers led by the powerful Muslim Brotherhood gathered outside the presidential palace in north Cairo in a show of support for his decision to temporarily place his decisions above judicial oversight.
"The people support the president's decisions," the crowd chanted.
On Thursday, the president undercut a hostile judiciary that had been considering whether to scrap an Islamist-dominated panel drawing up a new constitution, stripping judges of the right to rule on the case or to challenge his decrees.
The decision effectively places the president above judicial oversight until a new constitution is ratified.
The European Union on Friday urged Egyptian President Mohamed Morsi to respect the democratic process.
"It is of utmost importance that democratic process be completed in accordance with the commitments undertaken by the Egyptian leadership," a spokesman for EU foreign policy chief Catherine Ashton said in a statement.
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