Public official is pals with spymaster embedded in Arab state (9)
I believe the answer is:
ombudsman
'public official' is the definition.
(I've seen this before)
'pals with spymaster embedded in arab state' is the wordplay.
'pals' becomes 'buds' (I've seen this in another clue).
'with' means one lot of letters go next to another.
'spymaster' becomes 'M' (M is the head of MI6 in James Bond).
'embedded in' indicates putting letters inside (I've seen this in other clues).
'arab state' becomes 'Oman' (Oman is a Middle Eastern country).
'buds' put after 'm' is 'mbuds'.
'mbuds' put into 'oman' is 'OMBUDSMAN'.
'is' acts as a link.
(Other definitions for ombudsman that I've seen before include "Parliamentary commissioner" , "Commisioner" , "one appointed to investigate complaints" , "Official investigating complaints of maladministration" , "Official pursuing complaints against government departments" .)