Cheers Ahmad, I am not quite sure how much my ethnicity helps, but I didn't feel at ease (and still don't somewhat) at shooting people when I started.
What I found useful, was to shoot in heavily populated areas (especially touristy areas, so you naturally blend in wearing a camera), and pick easy targets (the young, the old, the slow, the weak...etc
).
I find it helps to compose using the LCD, it allows me to look one way but my camera points at another. It also gives me a better "preview" of the picture I am likely going to get.
Also I think having the right attitude really helps in reducing the awkwardness. As mentioned in one of other posts before, I don't feel like I am spying on people, I look for interesting scenes on the street where people happens to be part of composition. I don't do Eric Kim style of up and close portrait, as I don't have his people skill and guts. If I really want a candid portrait, I do my "ninja" move (smoothly move across the path of my subjects and take a shot without stopping, using LCD helps) or shoot from the hip (I find it a very effective way to get over the fear of shooting strangers when you get started).
Try to avoid eye contacts and look beyond your people subjects. If you are caught, smile and wave. Most of time people smile and wave back. I guess in the worst case, you just say "I am doing a project taking pictures on the streets" and "sorry", and run/move away (wearing comfortable shoes helps).
Like with many things, a lot of practice helps. I often go out to shoot people for the sake of shooting, not for making good photos. Just so that I can make sure I have the guts and skills to execute the shot when a good scene presents itself.
Good luck and have fun!