We enabled cash on delivery for UAE only and 2checkout for all countries. When I select UAE as billing adress and shipping adresss as different place in UAE then both payment methods are showing. But problem when I select different country as billing address and UAE as shipping adsress at that time only 2checkout is showing. I am using lotusbreath one page checkout.
For my knowledge Magento will work like that only.
The Drop down options you see in backend will work for Country selected in Billing address only not for shipping address