According to Wiki: "Quds Day, officially in Iran known as International Quds Day, is an annual event that began in Iran in 1979, that is commemorated on the last Friday of Ramadan, expressing solidarity with the Palestinian people and opposing Zionism as well as Israel's control of Jerusalem; Quds is that city's Arabic name." (Emphases mine)
Rabbi Joseph Katz argues that el-Kuds (an Arabic variant of al-Quds) is an abbreviation for the Jewish Temple:
"The Arabic name for Jerusalem is "el-KuDS" which is abbreviation for another Arabic name used for Jerusalem until the last century, "bet el-maKDeS". Under the Arab rule, in the 10th century Jerusalem was always called "bet el maKDeS" The name "BeT el-MaKDeS" is a translation of the Aramaic and Hebrew "BeiT ha-MiKDaSH", which means Temple. But Islam has no Temple, only the Jews did. Thus the Arabic name for Jerusalem makes no reference to Mohammed's trip to Heaven, but rather refers to the Jewish Temple."