The blog Arab Literature (In English) is running a feature on the 100 best Arabic Books according to the Arab Writers Union. You could go to the Writers Union page and run Google Translate and you would get a list with a few errors (The Cairo Trilogy by Mahfouz is the most egregious). But in addition to the correct translation of titles, the blog is indicating if the book has been translated into English, which is a great service. It seems about half the authors have been translated into English, although, not necessarily their book that is on the list.
So far the blog has done the first 30. Definitely, worth the look.
Updated:
Update II
Update III
I just put up 31-40.
http://arablit.wordpress.com/2010/04/26/best-100-arabic-books-according-to-the-arab-writers-union-31-40/
This is really going to kill me. If anyone would like to take the project out of my hands…?