Microsoft released Maren for Windows. Maren is a keyboard add-on utility that converts Arabic text written in English to Arabic. For example I can write 5aled and get “خالد” (Khaled). Watch a short video demonstrating Microsoft Maren here.

This is not the first service. Google Labs have the “Google ta3reeb” service. Which is basically a dynamic text area that converts the text.
But before Google, Yamli was the first service as far as I know. They have an online editor was well.
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- Windows 7 Upgrade Option in Saudi Arabia?
- Windows 7 RTM