When I think of modern/contemporary Arabian design, with a funky edge to it, but for a smaller space, I think of Riad Cinnamon, in Marrakesh, for inspiration. Why?
Well, at Riad Cinnamon there really is a very clever use of space. Most Moroccan Arabian design tends to be of a grand scale, and well, while that is lovely for a hotel, few of us have ceilings that reach two stories and double doors of double height. At this particular Riad, rooms of regular height are made cosy with rich warm romantic colours and moderating neutrals, with minimal decorative touches.
Equally small spaces, but that with higher ceilings, make the maximum use of the available space. Lofts, created by the unexpected addition of steep but lovely staircases, lead to seperate bedroom or living areas, carved out of the space of a tall but smaller room. I can see myself peacefully reading a book or snoring away up there (or down those stairs, vice versa).
Even the bathrooms make a clever use of space, fitting the sink and cabinet on the same wall seperating the shower area (or toilet) for privacy (always a luxury)----and it looks nice too!
The funkiness comes from the bold colour palette of acid green, oceanic blue, and deep orchid purples and mauves for the bedding and upholstery and on accent walls and architectural features. ....That, contrasted against a near neutral beige on the walls (at least partially---or on the ceilings) and black doors and deep dark brown shutters. It feels so young and fresh, and hip, and bold. Like adding cinnamon to a dish you wouldn't expect any spice to;).