Problem Description

Hebrew characters are displayed backwards.

Steps to Resolve

1.    Go to Control Panel > Region and Language (In Windows 8.1 its Region)

2.    Navigate to the Administrative tab

3.    Under Language for non-Unicode programs, go to Change system locale and set Current system locale to Hebrew (Israel)

4.    Apply and Close dialog

5.    You must restart Windows for the changes to take effect

6.    When you open the DGN file characters are displayed correctly.

Note:
This solution will also work for other languages such as Russian, Norwegian and several others that use special characters

See also

Using foreign characters in written text on English MicroStation V8i on English OS

Other language sources