What you are describing is an ARAB CONFEDERATION and not a MUSLIM Confederation. However, I think most Muslim countries will support it anyway because concentration of power for Muslim countries , whether Arab or Non Arab , is a good idea.
I would like to to see a confederation of Non Arab Muslim countries that are contigous including Pakistan, Iran, Turkey, Afghanistan and the six former Soviet Muslim Republics. Another Non Muslim block could be Bangladesh, Malaysia and Indonesia could also form. Having three major Muslim Blocks could concentrate Muslim Power which could be helpful in trade and commerce and defense of Muslim lands.