Here is our current position on this topic:

Although Android 2.2 adds support for Arabic characters, in reality, Arabic support will be limited on Android phones since most apps, plug-ins, and websites do not provide their own RTL and script shaping. They expect the browser/OS to provide such support, and this will come in a later Android release.

In other words, hang on a bit longer. We know it’s important and we are working on it!