Palestinian embroidery (a.k.a. tatreez fallahi/cross-stitch embroidery/عبر غرزة التطريز). Often it's used as decoration on bodices, cuffs, hems, headdresses. There's a great picture on that second link of 2 women pulling up their white sheilas to show off their amazing bodice embroidery, which they probably did themselves. Amazing detail and wonderful graphic designs. We have another pillow (which I can't find!), but really, I should have bought 10 or 20 of these. I was always kind of waiting to find an actual dress somewhere at the souq, but that never happened, and I ended up with very little instead. Big mistake! ;-)
However, who cares if I have enough samples of this amazing work? What matters is that Bella loves it, finds it a cozy place to hang out, and it flatters her lovely coat.