Aladdin is far from perfect. Aladdin, as a character, is super white-washed, while the evil Jafar's character design had no problem looking more Arabian. What's that say? According to Disney, apparently, white is right. But beyond that little blip on the racist radar, you've got the opening number, sung by a merchant. He sings, "Where they cut off your ear if they don't like your face / It's barbaric but, hey, it's home."
If you have the DVD copy of the movie, this line is changed a little, thanks to Arab-American groups protesting.