Disney's live-action adaptation of Aladdin brought the animated film's version of Agrabah to life, and this required a combination of on-site filming and creatively constructed sound stages. This is, of course, one of the trickier aspects of live-action movies. Beautiful Arabian-style cities and deserts can't simply be drawn like they can with animation. The House of Mouse could have gone the CGI route, but this could have negatively impacted the actors' performances—or the scenes might not have looked real enough. So, Disney went all out and created massive sets for the city of Agrabah and set out to location for those breathtaking desert scenes.

https://screenrant.com/aladdin-live-action-disney-filming-locations-explained/