Group of countries in Arab locality (4)

I believe the answer is:

bloc

'group of countries' is the definition.
(I've seen this before)

'in arab locality' is the wordplay.
'in' indicates the answer is hidden within the clue.
'BLOC' is hidden in the letters of 'arab locality'.

(Other definitions for bloc that I've seen before include "Group whose members have common objectives" , "Nations grouped for a purpose" , "Political group of nations" , "International alliance" , "Political allies" .)

I've seen this clue in The Telegraph.

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