Anti-semitism has largely expanded not only during the 20th Century, but also through the 19th. For hundreds of years, Jews were in a group of people known as the Dhimmi, or protected peoples, which meant that while their rights as a people were respected, they also had certain dues, such as the paying of a Jizya tax, which was a tax throughout much of the Arab world on non-muslims. This status was not specific to the jews, but largely on the People of the Book, those following either Christian or Jewish religious tradition. This was very liberal in comparison to most non-Christian treatment throughout Europe during the same time, as non-Muslims were provided security, and protection in return for extra taxation. Anti-Semitism had mostly expanded within the Middle East as a result of the breakup of the Ottoman Empire, which caused a huge amount of instability in a region with a very diverse population. European influence plays a major hand in this, such as the British encouragement of Arab nationalism throughout much of the core of the Arab world, and the zionist movement which caused a large amount of resentment for Jews and Jewish peoples. With regards to Nazi propaganda, during the fighting within North Africa, German military forces would broadcast in Arabic, spreading Jewish hate, and support for the occupying Nazi forces. This was mainly supported by Haj Amin al-Husseini, a Palestinian nationalist who had a massive following, and wanted to end Jewish nationalism, and spread Arab and Palestinian nationalism. He aided the Nazi government with propaganda throughout the Arab world, and resulted in much of the backwards thinking, and hate for Israel, and the Jewish people.

sources: A Discourse on Domination in Mandate Palestine, Zeina B. Ghandour - 2009

Jeffrey Herf, Nazi Propaganda for the Arab World (Yale University Press, 2009)