Um, modern Islamic fundamentalism is inextricably linked with the Third Reich and the Nazis.
And given that the Nazis do much, much, much better in TBO; Islamic fundamentalism gets off to a much stronger start than in @.
Additionally, with the Soviet Union so badly smashed in the war; all of it's energies are going towards rebuilding post-war, and cleaning up Nazi holdouts in the Ukraine, etc; it can't export it's brand of Secular Socialist Arab Nationalism to counter the Islamic Fascist Arab Nationalism pushed by the Nazis before their atomic demise.
To summarize a timeline involving one of the co-founders of the Muslim Brotherhood, Amin Al-Husseini:
WWI: He participates first hand in whatever you want to call the ethnic cleansing of the Armenians.
1917: He arrives in Palestine
1920: Begins organizing riots etc against Jews and a reign of terror against other islamic leaders in the area.
1921: British, in yet another of their bone headed rules; they appoint him the Grand Mufti of Jerusalem,
despite him coming in fourth place in a vote
1928: He becomes a central founding member of the Muslim Brotherhood, which preaches Wahabbinism. By the way, Hassan al-Banna, another founder of the Brotherhood, was an ardent supporter of Nazi Germany.
1929: He incites more riots in Palestine; leading to the massacre of the Hebron Jewish community.
1930s: Arab-Nazi groups spring up across the Middle East. For example, Young Egypt's slogan is a direct translation of the Nazi slogan "ein volk, ein reich, ein fuhrer!" Anwar Sadat spent four years in a British prison during WWII for collaboration with the Third Reich. Gamal Abdel Nasser's brother translated Mein Kampf into Arabic, etc.
1936: Al Husseini begins to liquidate people who oppose him, or who have less than total loyalty to his vision. He iced two Sheikhs connected with the Al Aqsa Mosque, a Sheikh on a religious court, the Mayor of Hebron, and 11 Mukhtars (community leaders) and their entire families.
1937: He visits Germany and meets Adolf Eichmann to discuss the "Jewish Question".
1941: Helps out with the pro-Nazi coup in Iraq (Stuart, how far does this get in TBO?)
Travels to Berlin and meets with Hitler, and later is made a highranking person in the Nazis plans for Bosnia. Serbian-Cyrillic alphabet outlawed. Orthodox Serbs forced to wear Blue armband. Jewish Serbs forced to wear Yellow armband. Takes the title of "Protector of Islam" and approves the Penjani plan which called for liquidation of the Serbian population. Hitler refuses to implement it. I guess he was busy with the Jews.
1942: He personally intervenes to block a Red Cross Exchange of 10,000 Jewish children for Nazi POWs in other countries. The children die in gas chambers.
1943: Amin Al-Husseini is made a Prime Minister of Pan-Arab Government by the Nazi regime and given some staff and a building in Berlin. He begins planning Concentration camps in Palestine, when the Nazis eventually get there. He becomes a close friend of Himmler, and personally insists on seeing a private tour of Auschwitz, where he tells the SS Guards to "work faster".
1944: Gives a speech in Berlin to Muslim SS Auxilaries: “Kill the Jews wherever you find them. This pleases God, History and Religion. This saves your honor. God is with you.”.
Co founds the Arab League (Egypt, Iraq, Jordan, Lebanon, Saudi Arabia, Syria, and Yemen), and is appointed President in Absentia of the Fourth Higher Committee within it.
1946: Yugoslavia requests his extradition for War Crimes. Egyptian government refuses to extradite him. British grant him amnesty(!!) and he returns to Palestine. Yasser Arafat meets him and begins to work for him.
1948: Upon the declaration of the State of Israel, Al-Husseini proclaims: “I declare a Holy War, My Muslim Brothers! Murder the Jews! Murder them all!” Additionally, the First Gen Sec of the Arab League proclaims that the war against Israel in '48 “will be a war of extermination and a momentous massacre which will be spoken of like the Mongolian massacres and the Crusades.”
1949-1952: Al Husseini is directly implicated in providing safe haven to ex-Nazis in Arab countries.
1962: Becomes President of the World Islamic Congress, which he also co-founded.
So with this ahem, pedigree; of various Arab groups -- It's really quite easy to see the Caliphate arising post-war given that the Nazis do much better; and given how many "banner bearers" of so-called Secular Arab Nationalism, like Sadat and Nasser were Nazi sympathizers before jumping ship post WWII to become clients of the USSR.
Additionally, why the hell do so many Arab mass movements adopt the freaking nazi salute? They KNOW what that means.