So I’ve been away from Arma for a while and seeing as how beautifully Alive works on Lythium now I was wondering if there are any good middle eastern milisia/civilian factions that work well with Alive?

Either the Community Faction Pack (CFP) or 3CB factions

CFP fits more if you're running CUP etc, whereas if your modlist is built around RHS I think 3CB factions fits better (only because it's RHS dependant)