I’m interested in Arabian and Islamic folklore, mythology, and oral tradition. I have been looking for story compilations & scholarly books on the subject but haven’t turned up much, yet. Are there any works out there that aren’t the 1,001 Arabian Nights or the Holy Qur'an?
I'd recommend Tales of the Marvelous and News of the Strange. It's a compilation of short stories found in late medieval manuscripts, though some of the stories are a few centuries older than that. Some of them also appear in 1001 Arabian Nights, but not all of them. It's the oldest collection of short stories in Arabic, and many of them feature supernatural or folkloric themes.