Since Aladdin are arabian and muslim, here are my points
All of those characters' names are arabic which now use by muslims
Sultan did say "Allah" when he talking to Jasmine
There are many arabic script on the wall of indoor and outdoor of palace
In TV series, there is one king from other state, he was called Mohammed
It is enough evidence that they are muslims and arabians.
As for Princess Jasmine, I never understand why Disney Company design her as Harem type which most women wore like this in the past at Islamic Golden Era were slaves of Kings. Princess is not a slave but a daughter of King. So I thought to design proper princess look.
Though I love this film, it is my favorite movie.