Faran Tahir — Pakistani Actor born on February 16, 1964,

Faran Tahir is a Pakistani-American film and television actor. Tahir is best known for his role as Raza, the leader of the terrorist organization "The Ten Rings" in Iron Man... (wikipedia)

Sometimes stereotyping happens not because of any nefarious reasons but rather because people don't know who you are or where you come from, so they go for the broad strokes about you, your culture, your faith, all that.
The box office has become global. I think that factors in to the question of how to portray different ethnicities and cultures.
We are all quick to point out all the differences but not as willing to accept what bonds us as humans.
When I read a script, if I feel it's written with the idea of just bashing other people, then I shy away from it. Sometimes it's some guy coming out with his own hatred, and I don't need to be a part of it.
Does Hollywood do movies about terrorism? Yeah. And why do they do that? Because it sells.