Yes.
The larger the memory heap, the smaller the native heap becomes. Mentioned here
The memory space provided by the operating system to the Java process varies by operating system and is used for two separate memory areas: the Java heap and the native heap. Because a finite amount of memory is provided by the operating system, and that memory is shared between the two heaps, the larger the amount of memory that is allocated to the Java heap, using the -Xmx setting, the smaller the native heap becomes. If the native heap is too small, an OutOfMemoryError occurs when it is exhausted, in the same way as for the Java heap.
It applies to Oracle as well.
The fact that you are on a 64-bit OS is irrelevant. You are using a 32-bit JVM and as a result are restricted in memory