Xen, that's a matter of opinion. I suspect that the vast majority of Sephardic Jews felt they got along great with the Arabs in roughly the same sense that the African-Americans felt they got along well with southern whites under Jim Crow.
Leo, yep, and also helped recruit for Himmler's 'Muslim Legion' in the SS, and died wanted as a war criminal by three Balkan nations. Ironically, he was never a valid candidate for the position of Mufti in the first place, and came in FOURTH in the selection, yet got the job. That was the start of the 80+ year joyride he and his nephew would drag the most cosmopoliton and economically advanced of all the Arab nationalities on.
Obviously there would have been a clear point to a Nazi effort to undermine or outright invade the Middle East in conjunction with Arab support. However, as Faelin noted, it has always astounded me that so many Arab leaders, including Nassar and Sadat, were so eager to welcome any power partnered with the Italians in Libya.
Alas, aktarian, a powerful case can be made for pro-Nazi sympathies on the part of many of the Arab leaders of the time. A great POD might be where some visionary Arab(Nassar?) realizes that things are slowly improving under the British and NO ONE associated with Mussolini can be good news for the Arabs, therefore he throws all his influence behind the British.
For one thing, would so many Jews have gotten military training, with prominent British officers well aware that said training WOULD go against them at some point, if the Egyptians had declared war on Hitler and offered a proper military force to the British?
Of course, while it might have made sense in the politico-military sphere to work with the Arabs, we are talking about Hitler. By the same token, it would have been totally sensible to finish the British prior to hitting Russia, but waiting for Hitler to let reality dominate his planning was never the wisest.
And if such a deal had been worked out, there's not a doubt in my mind that the Arabs would have lived to regret it's success. Or, far more likely, the Arabs as a race would NOT have lived to regret a Nazi success. Or the Poles, or Gypsies, or Russians, or Africans...