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Arabia is the name of the peninsula in the Middle East that is the site of modern Saudi Arabia, UAE, Oman, Yemen, Qatar and Kuwait. The name Arabia is derived from the name of its native people, the Arabs, who, in turn, got their name from the Greek "araps" (which I think means "dark," but wouldn't swear on it.)
As for the country Saudi Arabia, its name is derived from Arabia to mean "the part of Arabia that belongs to the Saudis" (the Saudis are the dynasty that declared Saudi Arabia's independence and have been ruling the country ever since).