In the end it was of course my foolishness. Since I don't read arabic, I couldn't understand that everything works as intended. The actual string is a hybrid of arabic and western languages and in aptana studio it reads:
Since the string contains rtl marking, the application name is displayed in the application menus as
When querying an arabic speaking person, he responded that the end result is correct. So sorry for bothering you for nothing and I hope this helps someone else who is wondering the same thing.