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yes it is banned from what I've seen. just read this:

It looks like you won't be traveling to Saudi Arabia to find any rare and powerful Pokemon any time soon. The United Arab Emirates (UAE) in Saudi Arabia have had it with the cutie Pikachu and his Poke-buddies.

In an effort to; "Protect the Muslims' ideology as well as their morals and their money" they're banning Pokemon from the country. You can't bring any more Poke-stuff in and if you've got any Poke-stuff they're gonna seize it.

Why? Well, the UAE have decided that playing Pokemon involves gambling and encourages non-islamic ideas.

Gambling is illegal in Islam and since Pokemon is all about winning cards from your opponent - which counts as gambling - Pokemon is illegal

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Q: Is Pokemon banned in the United Arab Emirates?
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