If they had been asked, they probably would have said that this is because they protest against Israel’s treatment of the Palestinian Arabs. However, there is likely also something of the clean/unclean distinction working here — the same kind of thinking that led Muslim cafe owners in Iran, in the early days of the Khomeini regime, to charge the Jews who hadn’t yet managed to escape the country double for a cup of coffee: after all, they would have to wash it twice after use. From Haaretz, with thanks to Sr. Soph:
Medical equipment manufactured in Israel worth over $50 million was returned recently by a Dubai hospital in the United Arab Emirates because it carried Made in Israel labels.
The equipment included staff uniform, patient clothes, bed sheets, pillows and towels. A hospital source refusing to identify itself or the hospital, said the fact the equipment was made in Israel was discovered during routine equipment inspections by hospital staff. “They were stunned to see the Made in Israel labels,” he said….
“We told out supplier we reject the transaction and are not obligated to go ahead with it if they will not tell us where it comes from. They know we will not take equipment that was made in Israel,” said the source.