Yes, progress has stalled.

Paul Sladen has summed it up nicely, so I’ll just quote him:

Quite a lot of this is hinging (waiting) on me. Dalton Maag are based in London, and when I was working at Canonical it was easy to pop in once a week or so, however I have been in London a lot less since over the last year.

I need to work on and complete some other things, and then afterwards to arrange to spend at least a couple of weeks in London working with Dalton Maag on this project.

Effectively, it's stacked up.

Update (Jan 2016): A new release of the Ubuntu Font Family containing Arabic/Urdu and Hebrew script support is available. See Paul’s comment below, and the announcement I made last year in my blog.