Yes you can SEO for words in other language character sets. It is a common mistake for SEOs to not consider tuning for words in appropriate unicode.
Just search Google for "تردمیل" ... I don't know what it says... no clue... think it might mean treadmill... but you can totally tune a page for that.
hreflang and canonical URLs... these are what you are probably looking for. And yes they help with international SEO and fixing certain types of SEO problems like duplicate content and certain classes of negative SEO attacks.
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