Forming Arabia looks pretty lame. I'm thinking of moving towards Persia, culture shifting and eventually forming Mughals. How workable is that?
Very, so long as you don't form Persia along the way. If Mughals is the direction you're going though, I'd suggest getting started that way more or less immediately. Concentrate your Arabian wars mostly on securing trade nodes and buffer land (and grabbing Najd for conversions as you said), but don't step on Mamluk or Ottoman toes - yet. Invade via Baluchistan once you've dealt with Hormuz. You might even be able to nab them as an OPM rump for Reconquest against Sindh. Once you've reached the Indus River, invade up through Multan into Doaba, and strike at Delhi from there. Mughals is a
powerful tag, so you want to get it as early as you can. Baluchi culture can form it, so that'll be the easiest culture to flip to by proximity. Ideally, you'll want to be a kind of weird "S"-shape from Oman via Baluchistan, up Multan and down into Delhi.
Personally, whenever I play in the region, I don't take Explo for Indonesia - at least not early. Influence/Diplo is better for managing the AE you will be getting in India, and India is so disgustingly rich - especially if you can steer to Persia or, as a stopgap, Hormuz - that you don't really
need Indonesia to get into meme money territory.
The alpha-omega for Oman > Mughals will be playing fast and loose with alliances, though. It's only a few steps removed from my own Baluchistan > Mughals campaign, and let me tell you, my diplomacy was so untrustworthy I was stabbing people in the back with the same pen we signed the Alliance with. You're going to have quite a lot of poor land until you secure the Hindustani region, so you'll need to rely on allies who can
actually help to take that land, and you'll want to fall upon them as soon as you've spent their blood in your wars.