Isaiah 19:19-25 In that day there will be an altar to the LORD in the midst of the land of Egypt, and a pillar to the LORD at its border. And it will be for a sign and for a witness to the LORD of hosts in the land of Egypt; for they will cry to the LORD because of the oppressors, and He will send them a Savior and a Mighty One, and He will deliver them. Then the LORD will be known to Egypt, and the Egyptians will know the LORD in that day, and will make sacrifice and offering; yes, they will make a vow to the LORD and perform it. And the LORD will strike Egypt, He will strike and heal it; they will return to the LORD, and He will be entreated by them and heal them. In that day there will be a highway from Egypt to Assyria, and the Assyrian will come into Egypt and the Egyptian into Assyria, and the Egyptians will serve with the Assyrians. In that day Israel will be one of three with Egypt and Assyria—a blessing in the midst of the land, whom the LORD of hosts shall bless, saying, "Blessed is Egypt My people, and Assyria the work of My hands, and Israel My inheritance."It is difficult to imagine a peace between the Arabs and Jews given the present circumstances. But notice what God has to do for this to take place. He will strike and heal. As was mentioned previously the rebellious have to be brought to a place of humiliation through discipline before they can be healed. God pacifies them by bringing judgment upon their sin, even bringing wars upon them.
It is also interesting that it is neither Israel nor Egypt or Assyria alone who are reckoned God's people here. Jews and Arabs will both be reckoned God's. But realize that he is speaking of "In that day". This I believe to be during the Millenial Kingdom in which both Jews and Arabs will come to repentance and reckon Jesus as Lord.