Cultural and Racial problems of this game were never observed in any of magazines and presses of gaming world, but this doesn't means that this game is correct about the topic that used for its theme.
game title is "Prince of Persia".
It means that this game is somehow connected to "persia" that is an ancient land. but this is not even "somehow" connected to the persia, neither early 90s games or ubisoft's trilogy and this new one.
1- It used Indian costumes instead of persian. i believe that their inspiretion for costume("They" means all the developers of all PoPs) was Sinbad the Sailor and Sinbad is an indian myth.
2- environment where games take place is very arabian. definitely they could not direct the architecture ascepts of game but you know they could do more. seeing some pictures of ancient buildings is very simple.
3- Perisans are not Arabian. i don't know what the fuck in world brought this idea that they are/were an "Arab Nation". here's what i'm talking about:
Scanned from Edge magzine. you can dig everywhere you can, Persian is aseparate race.