I have no historical interest in the Grand Mufti of Jerusalem. I know he figures in a variety of British files available at UK National Archives. Files from the Colonial and Foreign Offices, MI 5 name files and even an intercepted and decrypted German radio message
than was part of a selection of decrypted messages given to Prime Minister Churchill on 1 May 1943 (available in file HW 1/1655):
"Yugoslavia: visit by Grand Mufti of Jerusalem to Croatia considered by Germans on Apr 26 to have had good effect on Moslems, particularly with regard to recruiting for Moslem SS division, German High Command requested to arrange similar tour by Mufti to Albania with Italian agreement."
1941 may be the firm belief of the poster above, but German sabotage missions to the Middle East were carried out 1941 to 1944. The ones to Palestine and Transjordan were abysmal failures; the agents being captured within a day or two. These were mainly organized by the SD. These attempts were "ludicrous" but hardly the fault of the Allies. Fortunately for the Allies, SD attempts to foment resistance in the Middle East simply shows how inept the SD was in choice of objectives and agents. How much was known of these missions by the Mufti may be answered in one of his MI 5 name files (KV 2/2084 to 2092) which can be downloaded for free from https://www.nationalarchives.gov.uk/
- click on "search the catalogue" and enter the first file reference in the top box and follow instructions. You will have to register but this is simply giving an email address. Nothing onerous.
SD attempts at infiltrating agents into Palestine can also be found in MI 5 name files available at UK National Archives: KV 2/203 (a former Gestapo employee), KV 2/400, and KV 2/1163 (a German Jew released from Dachau). I do not know whether these have been digitized and available for download; there are other files of agents trained by the SD in Athens and sent overland via Turkey.
Going back to the Mufti in what became Yugoslavia, postwar the Yugoslavs several times requested the extradition of the Mufti for "atrocities" and war crimes.
As regards disinformation in the matters posted here can CogCalgary quote a source (archival or published) about this.