All emails sent from the website not through Hikashop (through RSForm Pro or joomla user registration email) are fine with no problems. I checked the setting in Hikashop email tab of the configuration and it is set to Charset to UTF8 with encoding format Base 65. The problem is that some of the emails come with this unreadable characters and some come with arabic characters but with the wrong translation. Also, the s% that is in the language file, gets printed as is instead of picking up the field for its value.
I also noticed that when I edited the language file from inside Hikashop, emails sent to the buyers are unreadable but emails sent to hikashop admin are readable but with the %s problem. In this same case, when I open the language file under /language/ar-AA/ar-AA.com_hikashop.ini with my own editor, all arabic characters are unreadable. Now, when I took a copy of the content of the arabic language file from inside Hikashop and replaced what is in ar-AA.com_hikashop.ini, emails sent to the buyers had arabic characters with the s% problem but emails sent to Hikashop admin were unreadable. It seems that it is either/or. Also, I noticed that the arabic that appears is flipped in-spite that the alignment is correct for example: it appears as ,s% hello rather than hello s%. Keeping in mind that arabic language is read from right to left.
Hope this information helps in figuring out a solution to this problem.