This study aimed (a) to provide initial psychometric evidence for the Arabic version of the Ethnic Identity Scale (EIS-Ar) and (b) to examine the associations between ethnic-identity dimensions and emotional distress among ethnic minority groups. We applied the Ethnic Identity Scale typology (Umaña-Taylor et al., 2004) to a sample of 566 participants drawn from two ethnic minority groups in Israel: Muslim Arabs (n = 214) and Muslim Bedouin Arabs (n = 352). Confirmatory factor analyses, measurement invariance analyses, and structural equation modelling (SEM) were conducted to assess the scale’s factorial validity and examine the associations between ethnic-identity dimensions and emotional distress. Findings from invariance analyses support the equivalence of the three-factor structure across ethnic groups, genders, and developmental stages. Multigroup SEM indicated that the associations between different dimensions of ethnic identity and emotional distress were comparable across the two ethnic groups. The proposed SEM model explained 28.2% of the variance in emotional distress. Demographic variables alone accounted for 8.3% of the explained variance and the addition of the three ethnic-identity dimensions (i.e., Affirmation, Resolution, and Exploration) contributed an additional 19.9% to the explained variance in levels of emotional distress. Higher levels of Affirmation and Resolution were associated with lower levels of emotional distress. Higher levels of education were also associated with lower levels of emotional distress. These findings provide preliminary evidence for supporting the validity and reliability of the EIS-Ar for assessing ethnic identity among Arabic-speaking minority populations. and highlight the potential importance of positive ethnic identity for minority mental health.