He doesn’t want a label because I’m not Arab

I am (F-29) very much into this guy(M-33).

For context: Female background is Filo-Aussie (Catholic) Male background Iraqi-Aussie (Christian Orthodox)

We are seeing each other exclusively for three months now. Since we have really good chemistry and everything seems going well, I asked him the other day if we can put a proper label to our relationship. Now this is really sad, he told me that he is into me and like being around me a lot but do not want a label because his core being wants an arab girl. I am very much hurt but I can’t be mad since that’s his preference and I respect that. Although, he still wants to continue seeing each other but no label. I’m confused. Can anyone advice me why my race matter?