Some people imagine that they themselves, matter and the world they see all around them are all absolute beings. But they regard Allah (surely He is beyond that) as an imagination pervading that absolute matter. Or else, since they cannot see Him with their own eyes, they say: "Allah must be somewhere we cannot see, in space or far away from human eyes." (Surely Allah is beyond that.) But these are all grave errors.
As the sole absolute being, Allah enfolds the whole universe, all people and places, the heavens and everywhere. He is manifested in the whole universe. According to the hadith, our Prophet (saas) said that someone who said that Allah was in the sky was telling the truth. But this account in no way conflicts with the fact that Allah is everywhere. That is because if someone at your location on Earth raises his hands and prays to Allah and thinks that Allah is in the sky, while someone at the South Pole turns to Allah in the same way, while someone else at the North Pole raises his hands and yet another individual in Japan, or America or Ecuador raises his hands to the sky in the same way and turns to Allah, then it is impossible to speak of any fixed direction. In the same way, if djinn, angels and demons at various points in space and the universe also pray toward the skies, it will again be impossible to speak of any fixed direction, and the situation will be one that covers the entire universe.
We must not also forget that Allah is unfettered by time and space. Allah's Own Being is different. But the manifestations of Allah are everywhere. If someone enters a room and says Allah is not there, he is denying Allah. The manifestations of Allah are in that room and everywhere. Wherever you may turn, manifestations of Allah are there. Several verses of the Qur'an state that Allah pervades all places, that He is closer to us than our own jugular veins, and that we will see His Face wherever we look. For example, in verse 255 of Surat al-Baqara Allah says "... His Footstool encompasses the heavens and the earth...." Verse 92 of Surah Hud says, "... But my Lord encompasses everything that you do" meaning that Allah also pervades what people do. (For detailed information, please see Harun Yahya's Matter: The Other Name for Illusion)