Weeks of knife, gun and car assaults by Palestinians in Israel and the West Bank have left 74 Palestinians dead, around half of them alleged attackers.
Ten Israelis and one Arab Israeli have also been killed, and violence has spread to the Gaza Strip as well.
Attacks against Jews began in early October as tensions over the flashpoint Al-Aqsa mosque compound in Jerusalem erupted.
The compound is the third holiest site in Islam, as well as being the holiest site in Judaism which venerates it as the Temple Mount.
Signup to our newsletter and follow us on Facebook and Twitter!
"This emergency meeting comes with the dangerous escalation by the Israeli government, the settlers, the Jewish extremist groups, and the Israeli forces in the blessed city of Jerusalem," United Arab Emirates Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan told the meeting, the official Saudi Press Agency reported.
He chaired the gathering of the 22-member bloc, and said the Palestinian issue is key to peace and security in the region.
"We gather today to take a decision about what we can do to stop these crimes and violations," the UAE minister said.
Arab League Secretary General Nabil al-Arabi urged the UN Security Council and others to work towards an end to the conflict, SPA reported.
The meeting came on the eve of the Fourth Summit of Arab and South American countries, to be held in the Saudi capital.