Need to make sure the humidity levels in the home are between 40% - 60% year round.

This doesn't make any sense! What exactly are we voting on? Both pics look the same to me.

This is a great space to work with. Since you have a good length, you can break the terrace into rooms.. with yew to divide the areas, or tall plants with shallow roots. Grow grass in curves and a pathway to lead visitors through the various rooms. Couple of ideas for garden 'rooms': Bamboo with golden stem or black stem as background, with charpai and 'moda' seating with cushions. A light under the foot of the bamboo, looking up will be alluring. Put up a trellis with fragrant climbers like jasmine and seating underneath on a part of the terrace which gets shade in the evening so you and your friends and family can relax. A dry garden with hardy plants like tall grass and Palm tree, pebbles on the ground to create the look. Plant a small flowering tree in one 'room' Add evocative lighting to create the mood in the evenings. As you can see there are many possibilities. Please ensure the ground is well protected from water seepage etc before you start planting. Also ensure the height of the periphery wall is taller for it to be safe for children and adults. Bear in mind the size of the plant, roots, sun and water needs before you choose your plants. Enjoy the creation..!

The privacy issue is enhanced by the use of courtyards that were in many cases encourage in the Middle East and in countries that were influenced by Islam. The idea is that all rooms have an inward view to this private courtyard and it provides a high level of privacy for the occupants. A direct way to gain privacy was to build a wall however having rooms provide the "wall" instead allowed for more daylight in all the rooms in such a plan. This is an image I just grabbed to demonstrate the general idea.