Answered by Sayyidi Habib Umar bin Hafiz (may Allah protect him and benefit us by him).
How do we differentiate between being proud of one’s religion and being arrogant?
Being proud of one’s religion is coupled with humility, fear of the return to Him and good action according to the Sacred Law and in veneration of it. At the core of our religion is humility, fear of Allah, being good to people and wisdom. The two greatest signs that point to someone being arrogant are that they look down upon others and do not accept the truth when confronted by it. Arrogant people are certain that they are better than others and do not live in fear of a bad ending.