First I know there are similar questions to mine,
and I do tried Font Squirrel Generator for tons of Arabic fonts, all of them render text in Englis
Hope it's not too late, try font2web .. worked for me perfectly, just save your html file with codepage-1256 encoding.
I tried to use the font Squirrel but there is no Arabic unicode support, and I tried to set the Unicode ranges: 0600-06FF,0FB50-0FDFF,0FE70- 0FEFE but the same problem in cutting arabic letters is still existed. finally I tried the site http://everythingfonts.com/otf-to-woff and the result was great
I don't have any Arabic font on hand so you'll have to try it:
Switch the Font Squirell to Expert mode.
Then on Subsetting: choose either No subsetting
or Custom subsetting
Sorted! :)
EDIT:
On custom subsetting you either need to tick your desired subset or type it in the input fields.