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The Create composite alarm button enables when you select alarms from the All alarms list. That is because a composite alarm's purpose is to monitor and aggregate state of other alarms, so you need to first pick which alarms to aggregate.
There is no dependency on alarms in the source account. You can create alarms in the monitoring account on metrics in the source accounts at will, and then aggregate them in composite alarms in the monitoring account.
It is not possible to make a composite alarm in the monitoring account checking alarm state of alarms in source accounts.
Thank you for submitting your question, Ziad! We answered this on an episode of AWS re:Post Live. You can click this link and jump to 22:59 in the time code to listen to us discuss - https://www.twitch.tv/videos/2204463289
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The part I was looking for in your answer was this "You can create alarms in the monitoring account on metrics in the source accounts at will, and then aggregate them in composite alarms in the monitoring account". Following the AWS documentation to setup cross-account for Cloudwatch is not allowing such action. I can't create alarms and I can't create composite alarms, from the monitoring account.