makes for a very religious nation.
Personally I'd not use mountainmen, I'm sure they where there but it just makes the nation look like a rag tag of tribes with the corsairs and the nomads and genie offspring. I'd focus a bit more on only nomads (continuity through the era's) and the most general "arab" stuff (which seem to be the ghulam/faram/ghazi.
Maybe keep some genies (continuity) one of the troop as cap only and the regular efriti/marid as cap only too (--> you wanted elemental sorcerers?) the genie nobility would then be summons
I think you are making to many types of priests, just remove the imam and go with the Kadi (both priest 2 seems a bit much) and no level 4 priests (are there many recruitable lvl 4 priests in the game?)
Same on the cavalry btw nomad, ghulam, faris AND Ghazi... maybe one or two to much?
(on this point and the last, maybe try to find a separation for some to fit better in LA? (the most heavily armoured?))
The Pekhlevan sounds like a very good idea
No magic carpets?
All in all I think we mustn't get much more units in an era than regular nations (I see it a lot in Sombre's excellent warhammer nations, but IMHO you won't use most of them, just the most efficient, and having a few around just for flavour is nice but let's not overdo it) (my roc seems very useless really but I wanted one since I like it from Sinbad's legend

)
The star-gazer and his abilities seem nice but maybe call him Wazir too?
reply on my .dm: yes they probably should get a bit more than leathers indeed, but they don't wear that much and I didn't find anything in vanilla game that seemed suitable and I didn't want a high class armour. Something for the bracers, shoulderpads and belt etc... is there a name for such an outfit?
and your point on the desert garb: do you mean you think the desertgarb should get those penalties too?