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The latter has announced support for the Internationalizing Domain Names in Applications (IDNA) and a series of further enhancements are expected. IDNA enables webmasters to use domain names which exist outside the original 26 characters used for the English-language - but not for too many other languages since many have odd accented characters. Additionally, this brings greater support for asiatic and arabic character sets.
The other new development which is currently being looked at, according to a senior Google source, is the addition of a tool within webmaster tools whereby you can specify the country your site relates to. The countries will be listed in a drop down list - and you’ll almost certainly only be able to choose once country per site.
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Now this is a good news for those who have domain names in other languages!!!