A collegue at work pointed me to دوّن - بلا حدود this morning. It's an Arabic Blog (and photo) aggregator that has gained a big following recently. It is currently aggregating about 400 blogs and there are over 500 blogs currently in the queue to get in.
Another regional blog aggregator is toot who I have been visiting on and off ever since they launched in late 2005. Of course, the father of Arab blog aggregation has to be Haitham Sabbah who ran the now defunct ArabReBlog which was around way back in 1994 2004.
With so many blogs around, discovery is becoming more and more of a problem and aggregation is one of the ways to help. I've never really been convinced of regional blog aggregation. Unless you're dealing with a really small geographical locality the subject matter covered is just too wide, the quality of writing is too varied and topics covered are probably mostly irrelevant.
Of course, judging by the popularity of both دوّن - بلا حدود and toot it seems that many people do find this sort of aggregation relevant. Perhaps these sites are acting as a focal point for the growing army of bloggers in the Arab world. I would venture that they are more useful for "community building" amongst Arab bloggers than as a destination that the "average blog reader" would visit.
UPDATE: Muhammad Basheer also pointed me to another Arabic aggregator تدوين which has this brilliant Arabic favicon 
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