Middle Easterner is famously mad ruler, twisted one (7)
I believe the answer is:
israeli
'middle easterner' is the definition.
(I've seen this before)
'is famously mad ruler twisted one' is the wordplay.
'famously mad ruler' becomes 'ear' (I can't justify this - if you can you should give a lot more credence to this answer).
'twisted' is a reversal indicator.
'one' becomes 'li' (I've seen this in other clues).
'ear' backwards is 'rae'.
'is'+'rae'+'li'='ISRAELI'
Can you help me to learn more?
(Other definitions for israeli that I've seen before include "Citizen of Middle Eastern state" , "One from the Middle East" , "From Jerusalem, perhaps" , "SW Asian" , "Country-dweller" .)