Do you think Arabian fantasy is needs to be Mythic? If I were to use the Mythic rules, at what Mythic level would you stop?
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No need for it to be Mythic at all. If you want to play something out of 1001 Nights, Disney's Aladdin or the old Sinbad movies, the default game serves fine.
An "Arabian" setting is just the culture and setting of the game, adding mythic is something you can do if you want to add more power to the characters and their foes, but it's not demanded by the setting.
Be sure to add a lot of Scimitars, Khopesh and Falchions! and Star knives :D