As far as I understand, extracting text from images is not possible for Arabic language, would it be possible to use Create ML to achieve the same effect that is built in to extract Arabic text from images and documents?
You are right about Arabic support. While Apple announced more language support for Live Text this year, Arabic was not one of them. The complete list is here:
It's not possible to extend Live Text to add additional user languages at this time.
To build your own system would require solving multiple ML problems, including locating text in the image, decomposing it into graphemes (characters), and to be robust it should probably include some sort of spelling/grammar layer to reduce transcription errors.
Building a complete solution like this is beyond what Create ML is designed for today.