You'll find Arabs around this city (5)
I believe the answer is:
basra
'this city' is the definition.
(I have seen 'Iraqi city' mean 'basra' so perhaps 'city' could also mean 'basra')
'you'll find arabs' is the wordplay.
'arabs' anagrams to 'BASRA'.
However, I am not clear how this is indicated.
'around' acts as a link.
Can you help me to learn more?
(Other definitions for basra that I've seen before include "City in Iraq" , "Chief port of Iraq" , "Middle Eastern city" , "South Iraqi oil port" , "Iraqi port on the Shatt-al-Arab waterway" .)