We can't solve the general problem of English syntax ambiguity in a HN headline, but that doesn't mean that we shouldn't try to be precise about the literal names of things
And yet the title kept the equivalent of "United". Except that there isn't a region of the world called "United", but there is one called "Arabia", and it isn't the country.
I don't find it too objectionable, Saudi Arabia refers to the country and part of Arabia (the peninsula) that is under control of the House of Saud. It may be an expat affectation though. My... American family lived there when I was a child and we called it "Saudi." Flying back to Saudi, where we'd see and interact with the native Saudis.
To your point about New Zealand, of course NZ would be used.
The title says Arabia because this practice of evil trillion dollar megacorps capitulating to repressive regimes happens across multiple countries recently (UAE & KSA) - just as they did w.r.t Russian accounts in the Epsteinist-occupied EU/UK.