I am not familiar with Azure cloud services but i can list for you the important elements so you can start looking for the issue. for this problem we have to make sure all the following:
php configuration file <ini>: you have to make sure the default encoding is utf8. <example: default_charset = "utf-8">
mysql encoding: i think you already did this step but its worth mentioning.
mysql connection string: the link to connect from php to mysql should be set encoding to utf-8. in Yii config.php find database component and add: ‘charset’ => ‘utf8’,
mysql collection for (db, tables, fields).
html output: should contain the meta tag for encoding and set to utf8. <head><meta charset="UTF-8"></head>
web server: (Apache, Nginx , etc): you have to make sure to set the default encoding to utf8. << not sure about how much important this is.
php files: which contains arabic better to be saved as utf8. << not sure about how much important this is.