They have described Him in terms that imply that His existence is necessary, and in terms that imply that His existence is impossible. Sometimes the one predominates in their discourse, and sometimes the other. Thus, outright disbelief predominates in some of them. This is the condition of the heretics who negate both members of a contradictory pair: their denial of Him and their assertion that His existence is impossible far outweigh their acknowledgment that His existence is necessary.
In others, affirmation may predominate. This is the condition of those who acknowledge most of His names and attributes, denying only a few, as is often found among some who affirm the divine attributes. These people believe in some of Allah’s names, exalted is He, and disbelieve in others; they believe in some of the Book and disbelieve in other parts. Hence people have disputed whether they are believers or disbelievers, in ways that are not pertinent here. Undoubtedly, among them are ignorant people who adopt mistaken interpretations and whom it is impermissible to judge as disbelievers, even though what they say is what disbelievers say. Among them are also hypocritical heretics whose hypocrisy and disbelief are beyond doubt.
Now, if your opponent has said, “We know and apprehend through our innate disposition that what you have described—an existent that is neither inside the world nor outside it—cannot exist,” then your statement, “Sound reason does not reject dividing existents into those that occupy space and those that do not,” provides no answer whatsoever to this assertion. For you