My suggestion is, try contacting PR/ Support of PayPal, they might be able to give you the right information on their policies.
Mate, thats very sad to hear. I might suggest you to try other major payment gateway like Liberty Reserve. Good luck!
Not all muslim countries. There are many countries which support well like Malaysia, UAE and Indoneisa
I am a member of PayPal but hate their autocratic methods, like most financial organisations they are a law unto themselves. That is until government regulation forces them obey national laws. Brazil has very strict banking laws and PayPal doesn't operate a full service there.