Someone quoted to me a Gemara in Sukkah which said that Hashem had charata that He created arabs. What daf in Sukkah is that on?
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The source is Sukkah 52b:
Rashi explains that the "tents of robbers" means the tents of shepherds (shepherds are often viewed in Chazal as robbers because they let their flocks graze on other's lands) and the whomever G-d brought it, means that G-d provoked His own anger, so to speak, by bringing them into the world.
Sukkah 52b Hakodosh Baruch Hu regrets creating 4 things. One of them is Yishmaelim.