Because they're an EBU member and the EBU includes the whole Mediterranean, have a map. The reason the Arab states don't compete in Eurovision isn't because they're not allowed to, but because Israel participates. Morocco and Lebanon even are founding members, Israel joined in 1957 (look under "past members" Israel switched organisations in 2017).

Australia got special dispensation to participate even though they're only an associated member because they've been nuts about the contest for ages, constantly hitting very high viewer numbers.