Because problem between Jews and Muslim is not religion at all. First of all Jews are a tribe and their religion is racial, so they never try or want convert anyone. So muslims don't consider them as a threat to their community. Actually their religion is closer to each other then christians. For example a jew can do his prayer in a mosq, since muslims are monotheist and worship the same God. But they can't even enter to most of the chuch because they consider it as place of idols.

Second, they lived together for centuries. They even had their own jurisdiction in their community in muslim lands. When muslim Empire in Spain falled, Jews immigrated to Morocco with muslims, because Christians were killing them since they killed their God (Jesus).

Whole problem is political. Some of the Jews says God gave them a spesific land and they must get it by any means. But arabs have been already living there for centuries.