Mohammad said a bunch of negative things about dogs: they're unclean, angels don't enter houses with dogs, he put a bunch of them to death, etc. Looking on Islamic websites, the consensus is it's allowed to own a dog as long as it's for a valid purpose e.g. hunting, guarding, farming, and it doesn't live indoors in the same living space as humans.
So it's effectively banned as a pet, you can't have it for fun and you're not supposed to keep it indoors. No surprise people are unfamiliar with them in the middle-east, and they'll continue being as long as they're religious.