The first Internet domain names using non-Latin characters are being rolled out, a plan put into motion after approval from the Internet Corporation for Assigned Names and Numbers (ICANN). Arabic-speaking nations are the first to reap the orthographic benefits, with new country codes available for Egypt (مصر), Saudi Arabia (السعودية), and the United Arab Emirates (امارات). The Egyptian Ministry of Communications and Information Technology, previously online at <http://www.mcit.gov.eg/>, is blazing the trail with its new URL:
Not everything is fully worked out with the new system, though. Browsers that aren't caught up to speed on the non-Latin domain names will see the addresses rendered as Latinized gobbledygook. The Egyptian Communication Ministry's Arabic-script URL, for instance, currently resolves to <http://xn—-rmckbbajlc6dj7bxne2c.xn--wgbh1c/>. That's not very communicative.
[Update: See the very helpful comments below for an explanation of the Latinized encoding.]