what kind (definition) of art are we talking about?
http://en.wikipedia.org/wiki/Islamic_art
In general, I think art that is to beautify and does not go against qur'an and sunnah is encouraged in Islam, as per general rule of this hadeeth:
From ’Abdullaah Ibn Mas’ood
radiallaahu ’anhu who said that the Prophet
sallallaahu ’alayhi wa sallam said,
“No one will enter Paradise who has an atom’s weight of pride in his heart.” A man said, “What if a man likes his clothes to look good and his shoes to look good?” He said,
“Allaah is beautiful and loves beauty. Pride means denying the truth and looking down on people.” (muslim)