According to the dictionary, they use the word هُولَنْدَا for 'the Netherlands'. In fact many people around the world still (erroneously) refer to that country as 'Holland'. I also found the name الأَراضي المُنْخَفِضة, but wonder whether it is normally used. In Spanish, too, we often choose the shorter name 'Holanda' instead of 'los Países Bajos', which is more of a mouthful.
Conchi, Things are not as "cut and dry" or as simple as they might seem. The Dutch call their country "Nederland" not the Netherlands. Are we "allowed" to call them "Dutch"? That's not what they call themselves. Of course we are. "The Netherlands" means "the low lands". Belgium, Holland, and Luxemburg are all part of "the low lands". Are we going to get people saying "Why do they get to call themselves 'the low lands'? Belgium and Luxemburg are also 'the low lands' they shouldn't get to call themselves 'the low lands!' ". Even though English speakers do use the term "the Netherlands", they have called the country "Holland" since around the 9th century. "The Low Lands", like other regions of the world, have "changed hands" many times over the centuries and have been divided in different ways and have had different names.
Countries get to call themselves what they want to call themselves and other countries also get to refer to them the way they want to in their own language. Germany calls itself "Deutschland" Spanish speakers call it "Alemania". Should others insist Spanish speakers change what they call Germany and other countries, for instance?