Actually the update will be split into
3 Chapters.
Chapter 1 is this - basically the western part of Baghdad town, the Kirk area and the Phantom Desert + Khalia's Hideout Dungeon. It will bring new European skills (most notably an update to warlocks) and set the level cap to 125.
Chapter 2 adds a much bigger area called the Flaming Tree which is very visually impressive and a large dungeon named the Devil's Garden and Petra's Dungeon.
This will raise the cap to 130 and Degree 14 will be introduced by then.
Here's the ingame map for all of the 125 + 130 Arabian areas, but keep in mind that they are in fact much larger than it would seem at first glance and a big part of the 130 areas are not even on the map.
Very little is known about Chapter 3 as of this moment, only that it will unlock east Baghdad and will connect Arabia to west Roc Mountain (notice the blind road going nowhere that goes to the mountains? Yep, it will connect there). The only area we know about right now is some sort of a mountain fort that you can see in some of the wallpapers. This will be the final area of the game and the levels will
allegedly go up to 140 with degree 15.