Sand possibly holds uranium in this Arab country (5)
I believe the answer is:
sudan
'this arab country' is the definition.
'sand possibly holds uranium' is the wordplay.
'possibly' is an anagram indicator.
'holds' is an insertion indicator.
'uranium' becomes 'U' (U is the chemical symbol for uranium).
'sand' is an anagram of 'sdan'.
'sdan' placed around 'u' is 'SUDAN'.
'in' acts as a link.
(Other definitions for sudan that I've seen before include "NE African country, capital Khartoum" , "African nation" , "African region" , "Recently-split country" , "Country between Egypt and Zaire" .)