Drop Arab leader's story (7)
I believe the answer is:
parable
'story' is the definition.
(parable is a kind of story)
'drop arab leader's' is the wordplay.
'PARABLE' is hidden in amongst the letters.
But, I am uncertain how this is indicated.
(Other definitions for parable that I've seen before include "Biblical allegory" , "Gospel story" , "Instructive story" , "Moral-carrying story" , "Short moral story" .)