The Arabian carpetshark is a bycatch in trawl and stake net fisheries, but it has a low market value and is usually discarded at sea. It is assumed to have a fairly high post-release survival rate.
A study of the Kuwaiti shrimp fishery conducted in the 1980s showed that carpet sharks comprised 14% of overall bycatch. As the Arabian carpetshark is known to associate with coral reefs, his implies  the fishery is likely destroyed important coral habitat.

Habitat decline is probably the largest challenge facing this species. In the Gulf, climate change has caused coral reef bleaching. There have also been changed cause by the damming of the Tigris-Euphrates river system in Turkey and the drainage of the Iraqi marshes, plus war-related oil spills, and rapid large-scale coastal development sometimes involving coastal land reclamation. Overall, coastal reefs and other habitat have been heavily impacted, eg. the almost total loss of mangrove areas around Bahrain.
High levels of polycyclic aromatic hydrocarbons (PAHs) and benzo [a] pyrene reported from this species from Kuwait (Al-Hassan et al. 2000).
In India, general declines in carpetsharks are increasing due to more intensive fishing pressure linked to population growth.
Arabian carpetsharks are also collected for the aquarium trade.