"That's one of the conditions she put in her contract," label Toypes export manager Belen Conde told BBC News Online. "She wouldn't wear anything too Arabic, like a turban."
The spring-summer collection of the Spanish fashion house was full of elaborate embroidery and included Arabic-inspired touches like turbans and pantaloons.
But the 17-year-old daughter of the president's brother Neil appeared alongside Toypes designer Jorge Galinanes clad in a simple black dress.
Ms Conde said three outfits had been brought to the model's hotel room in advance, and Ms Bush had rejected one of them on the grounds that it was "too Arabic".
But the president's niece knew all along that the Toypes collection was inspired by the Middle East, she added.
Ms Conde said Toypes' use of flowing cloth and Arab styles was a "feminine style", not a political statement.
Brief appearance
Ms Bush made her appearance at the end of the fashion show, walking onto the catwalk hand-in-hand with the designer.
She was originally slated for a larger role in the show, but Lauren, who is the face of Tommy Hilfiger and has appeared in numerous international fashion shows, felt ill on Thursday.
The fashion house selected Ms Bush as a model because she is an "international personality who had never modelled in Spain," Mr Galinanes said.
"This is fashion, not politics. You can't politicize fashion," he said.
Ms Bush pulled out of at Barcelona's fashion week last year because it occurred only a few days after the 11 September terror attacks.