Where, abroad, the laity are confused? (5)

I believe the answer is:

italy

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'where abroad' is the definition.
The answer is a location as well as being a singular noun. This is suggested by the definition.

'laity are confused?' is the wordplay.
'are confused?' indicates anagramming the letters.
'laity' anagrammed gives 'ITALY'.

'the' acts as a link.

Can you help me to learn more?

(Other definitions for italy that I've seen before include "Catholic country" , "Rome is its capital" , "Country of Bologna, Bari and Brescia" , "Country of southern Europe" , "Barolo wine from here" .)

I've seen this clue in the Evening Standard.

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