According to the BBC:
Net regulator Icann has switched on a system that allows full web addresses to contain no Latin characters.
Egypt, Saudi Arabia and the United Arab Emirates are the first countries to have so-called “country codes” written in Arabic scripts.
although there is also the warning
…would also not work on all PCs immediately.
“You may see a mangled string of letters and numbers, and perhaps some percent signs or a couple of “xn--“s mixed into the address bar,” said Mr Davies. “Or it may not work at all.”
More info available at ICANN