When a company targets people in certain country or region, their online services is better to focus on that area too, thus it would not be wise to has a very far servers, in order to avoid delay in response time, the more shorter distance between user and server, the more faster response time the user will get.
CDN solutions are not enough, it do great job for static files (photos, css, js, fonts... etc), or even for cached pages and cached API's, but it is irrelevant when it comes to first time request or for no-cache page/API.
A few months ago, AWS (Amazon) opened the first commercial and publicly available data center in the middle east, which is located in Bahrin, we were very happy to finally put our hands on a server in middle east, the result was fascinating!
We were able to cut the response time from about 200ms down to 17ms!
That made a very clear difference even for non-technical users, the clients said it is really worth the additional cost.
One live example here is a large e-commerce platform, www.clearance.ae, which mostly target countries like United Arab Emirate, Saudi Arabia, Bahrin, Oman & Kuwait, any user in middle east can notice that it start to load faster than usual or from other websites, as if it is a local request, which is technically is, we measured the difference in digits, and made comparing chart:
Another company was targeting multi regional places, so we setup multi servers for them, in USA, Europe, Asia, and they needed middle east too, so they have very fast response service all around the globe.
There is no one solution for everything, every company need's its own specific solutions, we glad we can always provide many solutions for each case after considering all involved factors, and we enjoy building it.