Where Is Allah?
Question

Some people say that Allah is above the heavens (according to one of the verses of the Quran), and may scholars say that Allah exists without a place, since only the creation has the characteristic of needing a place and we know the ayah "Laysa-ka-mithli-he-shay" - (proving Allah does not resemble His creation); is He everywhere, existing without a place, or above the heavens?
Praise be to Allah.The people of Sunnah and Jama`ah (adherents to the prophetic way) believe that Allah is exalted above His creation because of the evidence of the Quran, Sunnah (prophetic traditions), consensus of the scholars, common sense and man’s innate instinct (fitrah).
Evidence from the Quran that Allah is above His creation
The Quran describes the "exaltedness" or "highness" of Allah in different ways, as His being high and above, and by describing how things come down from Him, and go up to Him, and by stating that He is above heaven . For example (interpretations of the meaning):

(Highness):
	"… and He is the Most High, the Most Great." [2:255]
	"Glorify the Name of your Lord, the Most High." [87:1]
(Above):
	"And He is the Irresistible, above His slaves …" [6:18]
	"They fear their Lord above them, and they do what they are commanded." [16:50]
(Things coming down from Him):
	"He arranges (every) affair from the heavens to the earth … " [32:5]
	"Verily We: it is We Who have sent down the Dhikr (i.e., the Quran) …" [15:9]
(Things going up to Him):
	"… To Him ascend (all) the goodly words, and the righteous deeds exalt it …" [35:10]
	"The angels and the Ruh (Jibril) ascend to Him …" [70:4]
(Allah is above heaven):
	"Do you feel secure that He, Who is over the heaven, will not cause the earth to sink with you …?" [67:16]

Evidence form the Sunnah that Allah is above His creation
Many reports were narrated "Mutawatir" (i.e. with a large number of narrators at every stage of the isnad/chain, such that it is impossible for them all to have agreed on a lie) from the Prophet (peace and blessings of Allah be upon him), describing his words and deeds and things of which he approved. 

For example, he (peace and blessings of Allah be upon him) used to say "Subhana Rabbi Al-A`la (Glory be to my Lord Most High)" in Sujud (prostration), and in some Hadiths (reports) he is reported to have said "By Allah Who is above the Throne."
Among his deeds is the gesture of pointing up with his finger, when addressing the people in the greatest gathering, on the Day of `Arafah during his Farewell Pilgrimage. He asked the people, "Have I not conveyed the message?" and they said, "Yes!" He asked again, "Have I not conveyed the message?" and they said, "Yes!" He asked a third time, “Have I not conveyed the message?" and they said "Yes!" Each time, he said: "O Allah, bear witness!" - pointing up to the sky and then at the people. He also used to raise his hands towards heaven when he made Du`a (supplication), as reported in many Hadiths. This is proof via his actions that Allah is exalted and high.
An example of an approval of the Prophet (peace and blessings of Allah be upon him) which indicates that Allah is Exalted and High is the Hadith (report) concerning the young slave girl, to whom the Prophet (peace and blessings of Allah be upon him) said: "Where is Allah?" She said: "In heaven (menaing above heaven, as explained in the answer to question #124469)." He asked, "Who am I?" She said, "The Messenger of Allah." So he said to her master: "Set her free, for she is a believer."
	This young girl was uneducated, as many are, and she was a slave, but she knew that her Lord is above heaven . Some misguided people deny that Allah is above heaven , and say, "He is neither above nor below; neither to the right nor to the left. He is everywhere!"

The consensus of the scholars that Allah is above His creation
The Salaf (pious predecessors) agreed that Allah is above heaven, as is reported by scholars such as Adh-Dhahabi, may Allah have mercy on him, in his book Al-`Aluw lil `Ali Al-Ghaffar.
Evidence form common sense that Allah is above His creation
Highness is a quality which is associated in people’s minds with perfection. If this is the case, then it should be attributed to Allah because every absolute perfection should be attributed to Him.
Evidence form the innate instinct of man that Allah is above His creation
There should be no dispute that man instinctively knows that Allah is above heaven. Whenever something overwhelming befalls a person, and he turns to Allah for help, he looks towards heaven, not in any other direction. But it is strange that those who deny that Allah is above His creation still raise their hands in supplication to no other direction than towards heaven.
Even Pharaoh, the enemy of Allah who disputed with Musa (peace be upon him) about his Lord, told his minister Haman (interpretation of the meaning):
"O Haman! Build me a tower that I may arrive at the ways, - the ways of the heavens, and I may look upon the god of Musa …" [40:36-37]
He knew in his heart of hearts that Allah is real, as He says (interpretation of the meaning): "And they belied them (those ayat/signs) wrongfully and arrogantly, though their own selves were convinced thereof …" [27:14]
These are a few of the indications that Allah is above the heavens; this proof comes from the Quran, the Sunnah, the consensus of the scholars, common sense, man’s own instincts and even the words of the non-Muslims.
We ask Allah to guide us towards the Truth.
For more details, please refer to the following answers: 9564 , 146779 , 10243 , 258981 , 288236 , and 26745 .
And Allah knows best