IIRC - Arafats uncle was the Grand Mufti of Jerusalem, WWII era. He was personally acquianted with Hitler and had visited Hitler in Germany.
Yes he was. Here is an article on that. And here's a excerpt:
The Mufti of Jerusalem, Haj Amin al-Husseini was later the notorious Nazi who mixed Nazi propaganda and Islam. He was wanted for war crimes in Bosnia by Yugoslavia. His mix of militant propagandizing Islam was an inspriation for both Yasser Arafat and Saddam Husein: He was also a close relative of Yasser Arafat and grandfather of the current Temple Mount Mufti. "Arafat's actual name was Abd al-Rahman abd al-Bauf Arafat al-Qud al-Husseini. He shortened it to obscure his kinship with the notorious Nazi and ex-Mufti of Jerusalem, Haj Muhammed Amin al-Husseini." Howard M. Sachar, A HISTORY OF ISRAEL (New York: Knopf, 1976). The Bet Agron International Center in Jerusalem interviewed Arafat's brother and sister, who described the Mufti as a cousin (family member) with tremendous influence on young Yassir after the Mufti returned from Berlin to Cairo. Yasser Arafat himself keeps his exact lineage and birthplace secret. Saddam Hussein was raised in the house of his uncle Khayrallah Tulfah, who was a leader in the Mufti's pro-Nazi coup in Iraq in May 1941.