ولا يتمكن في مكان
Nor is He situated in a place.
Being situated in a place ordinarily means that a body occupies a determinate location. Bodies have positions, directions and distances, and these belong to their spatial condition.
Assigning such location to God would import creaturely relations of containment, proximity, distance and selection of one place rather than another.
Key distinction: To affirm that God exists is not to assert that God occupies a bounded region as a material body does. The negation concerns the second claim, not the first.