Wato is the flying hand-wringing merchant/slave owner alien from episode one right? I had assumed he was a stereotypical Arab, but I suppose the antisemitic caricature is there too.

I honestly don't see why these overtly offensive stereotypes were abused throughout the films, I was like 9 when I saw the Phantom Menace and even I recognized that the Gungans were pretty poorly conceived.

Even Disney learnt to avoid those by the 90's.