Iran’s choice of Arabic-script top-level domain has passed the string approval stage of ICANN’s internationalized domain name process, making a delegation likely before long.
The manager of Iran’s existing Latin-script ccTLD, .ir, applied for ایران and ايران, which mean “Iran” in Persian. The two look identical to me, so I’m assuming they just use different Unicode code points.
In Punycode, the two strings are .xn--mgba3a4f16a and .xn--mgba3a4fra. Both have been given the stamp of approval, meaning Iran will now have to apply to IANA for delegation.
According to ICANN, there are currently 18 IDN ccTLD strings approved and awaiting delegation, belonging to Iran, India, Saudi Arabia, Qatar, Singapore, Syria and Taiwan.
Some of these countries, such as Saudi Arabia and Taiwan, already have IDNs live in the DNS root, but also have multiple backup variants that have been approved but not yet delegated.