Terminal by default don't support Arabic well so we need to do some modification to allow it to work properly:
1- Install the following packages:
2- Download & install THIS package.
sudo apt-get install libfribidi0 libfribidi-dev
3- Open /usr/share/applications/gnome-terminal.desktop by any editor you like:
4- Add the following line to the end of file:
gksudo gedit /usr/share/applications/gnome-terminal.desktop
5- If you have a terminal icon in desktop remove and make a new one.
6- That's all.
Now you can work well with Arabic & Persian in the terminal. You can create files, folders in both languages in a proper manner & you can can see file & folders names correctly.
This also added Arabic & Persian support to xterm & PuTTY.