I would call it cultural theft. But a better word is cultural appropriation, and the original cartoon—though iconic—did it worse. Aladdin was first written sometime in the 9th or the 10th century (oldest surviving complete manuscript of 1001 nights is from the 15th century). It was translated into English in the 18th century.

Disney made a cartoon of the story without understanding the culture it comes from with the main purpose of selling it to an audience with an even less understanding. And the results was a horrible misrepresentation of somebody else’s cultural heritage.