It is more complex than that - invoking Hitler is dishonest. There are Jews in multiple Arab countries still, though far fewer now. They haven't been killed, put into concentration camps, etc. The issue with Israel is one of who does the region belong to, and the unresolved status of Palestinians.
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At various times, Jews in Muslim lands lived in relative peace and thrived culturally and economically. The position of the Jews was never secure, however, and changes in the political or social climate would often lead to persecution, violence and death.
When Jews were perceived as having achieved too comfortable a position in Islamic society, anti-Semitism would surface, often with devastating results. On December 30, 1066, Joseph HaNagid, the Jewish vizier of Granada, Spain, was crucified by an Arab mob that proceeded to raze the Jewish quarter of the city and slaughter its 5,000 inhabitants. The riot was incited by Muslim preachers who had angrily objected to what they saw as inordinate Jewish political power.
Similarly, in 1465, Arab mobs in Fez slaughtered thousands of Jews, leaving only 11 alive, after a Jewish deputy vizier treated a Muslim woman in “an offensive manner.” The killings touched off a wave of similar massacres throughout Morocco.
Other mass murders of Jews in Arab lands occurred in Morocco in the 8th century, where whole communities were wiped out by the Muslim ruler Idris I; North Africa in the 12th century, where the Almohads either forcibly converted or decimated several communities; Libya in 1785, where Ali Burzi Pasha murdered hundreds of Jews; Algiers, where Jews were massacred in 1805, 1815 and 1830; and Marrakesh, Morocco, where more than 300 Jews were murdered between 1864 and 1880.
Decrees ordering the destruction of synagogues were enacted in Egypt and Syria (1014, 1293-4, 1301-2), Iraq (854-859, 1344) and Yemen (1676). Despite the Koran’s prohibition, Jews were forced to convert to Islam or face death in Yemen (1165 and 1678), Morocco (1275, 1465 and 1790-92) and Baghdad (1333 and 1344).
The situation of Jews in Arab lands reached a low point in the 19th century. Jews in most of North Africa (including Algeria, Tunisia, Egypt, Libya and Morocco) were forced to live in ghettos. In Morocco, which contained the largest Jewish community in the Islamic Diaspora, Jews were made to walk barefoot or wear shoes of straw when outside the ghetto. Even Muslim children participated in the degradation of Jews, by throwing stones at them or harassing them in other ways. The frequency of anti-Jewish violence increased, and many Jews were executed on charges of apostasy. Ritual murder accusations against the Jews became commonplace in the Ottoman Empire.
As distinguished Orientalist G.E. von Grunebaum has written:
It would not be difficult to put together the names of a very sizeable number Jewish subjects or citizens of the Islamic area who have attained to high rank, to power, to great financial influence, to significant and recognized intellectual attainment; and the same could be done for Christians. But it would again not be difficult to compile a lengthy list of persecutions, arbitrary confiscations, attempted forced conversions, or pogroms.24
The danger for Jews became even greater as a showdown approached in the UN. The Syrian delegate, Faris el-Khouri, warned: “Unless the Palestine problem is settled, we shall have difficulty in protecting and safeguarding the Jews in the Arab world.”25
More than a thousand Jews were killed in anti-Jewish rioting during the 1940’s in Iraq, Libya, Egypt, Syria and Yemen.26 This helped trigger the mass exodus of Jews from Arab countries.<<
Norman Stillman, The Jews of Arab Lands
G.E. Von Grunebaum, “Eastern Jewry Under Islam
24New York Times, February 19, 1947
Norman Stillman, The Jews of Arab Lands in Modern Timesz
Vamberto Morais, A Short History of Anti-Semitism
Maurice Roumani, The Case of the Jews from Arab Countries: A Neglected Issue