Setting of the story of Arabian Nights

The setting for Arabian Nights (sometimes called 1,001 Arabian Nights) is in the Middle East. Specifically, it takes place in the tents of the Sultan. The Sultan has had bad luck with wives (believing them all to be deceitful). His newest wife knows what her fate will be after their wedding night and so she tells him tales to distract him and keep in interested in keeping her alive. Therefore, the stories are told from the Sultan's tent. The stories that she tells, of course, are still set in and around the Middle Eastern areas.