The relationship between political expediency and racial ideology in Nazism isn't straightforward. The Nazis were certainly willing to make deals with "racially inferior" groups when it suited them (or to redefine what was "racially inferior" to further their overall plans), and I do not doubt they could do that in the Middle East as well. After all, they had little problems entertaing contacts with the Lehi (and earlier in the thirties, with the Jewish authorities in Palestine too), as noted in this thread.
On the other hand, there are several cases where a more expedient policy was not undertaken because of racial views, prominently in Ukraine. This depends a lot on the hierarchy of general goals in Nazi ideology. Destruction of Jewry and extermination/enslavement of Eastern Slavs, critically in Ukraine (slated to become the prime colonization area for Aryans) were priorities. Everything regarding the Arab world wasn't, as the area was relatively secondary their overall strategic designs, except to the point where they wanted to defeat Britain.
This makes reasonable to believe that they would have worked with any willing Arab against the Jews and the British (as they tried to do historically). At the same time, they would have acted against any Arab not willing to co-operate with them (of which I expect to be fairly plentiful) with extreme prejudice.