The Middle Eastern Federation is, or was, a comparatively small union based in the Middle East, possibly a union of Islamic countries similar to our Arab League. Little is known about their organization or composition, though it would seem that it's either a coalition of independent states, or a confederacy similar to the United Arab Emirates in the real world. The MEF would seem to be a largely Arab-based nation, judging on the dress uniforms of their soldiers and the architecture seen in episode 5. Though the map given shows it does not hold the traditionally Arab parts of North Africa, nor the Muslim parts of Anatolia, Central Asia, or the Caucuses. The Middle Eastern Federation seems to have the capability of producing their own Knightmare Frame called the Bamides and were called "shoddy over-sized imitation Knightmare" by Andreas Darlton.
The Middle Eastern Federation was at war with the Holy Britannian Empire until the middle of 2017 a.t.b., when elements of the Britannian Army under Cornelia's command finally put an end to the fighting. It was then conquered and renamed Area 18. The Middle Eastern Federation deployed its own variant of the Knightmare Frame, the Bamides. As stated by General Bartley, it is assumed that the Middle Eastern Federation also had a Thought Elevator on their territory.
It is known that the MEF member-states had joined the U.F.N. upon its ratification, most likely by their governments, which were forced to go into exile.
Following Lelouch's ascension to the throne, he abolished Britannia's colonial rule, returning each respective area to their former government and name. It is presumed that the Middle Eastern Federation's status was restored as well.
In the Code Geass Akito of the Ruined Land trailer the Middle Eastern Federation territory was finally revealed. In the picture shown on the right the Middle Eastern Federation is actually smaller than the three great powers, The Holy Britannian Empire, The Europia United, The Chinese Federation, and even Australia.
The Middle Eastern Federation is a reference to several failed attempts to create a Pan-Arab nation. It could be a reference to the Arab Federation, a union between Iraq and Jordan, a reference to the real-life United Arab Emirates or a reference to the Arab League, a real-world organization of several Arab states.
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