What Would Happen If A Movie Like Borat Was Made By an Arab Impersonating A Jew ?

Probably not. You see, the Jews have joke-telling immunity for Jewish jokes. Did you ever see that episode of Seinfeld with the dentist who converts to Judaism, and Jerry is convinced he did it just for the jokes? It's like that. Jews can tell jokes about Jews. It's kind of a defense mechanism. The anti-semite approaches the Jew, knife in hand. And what does the Jew do? He takes the knife, polishes it until glistens, holds it at arm's length, dramatically shoves it deep into his chest, pulls the knife out, cleans it off until it shines again, hands it back to his would-be attacker and says: "There. I'd like to see you do it half as well!"

Similarly, I don't think a movie with a Jew impersonating an Arab, at least not with the kind of jokes Borat makes, would work either.

By the way, the character Borat is not a Jew, he's a Jew-hater. The actor, Sacha Baron Cohen, is a Jew. So a movie with an Arab playing a Jew is not really analogous. The proper analogy would be a movie with an Arab impersonating an anti-Semite and saying nasty things about Jews, which doesn't really sound like a movie at all, come to think of it.

Depends upon the distribution area you have in mind---BTW, the Borat character is not an Arab, so it wouldn't be humor in the opposite.

I doubt it. Frankly, I didn't find Borat's movie very funny either.