This character is a Other Letter and is mainly used in the Arabic script.
The glyph is not a composition. It has no designated width in East Asian texts. In bidirectional text it is written as Arabic letter from right to left. When changing direction it is not mirrored. The word that U+067F forms with similar adjacent characters prevents a line break inside it. The glyph can be confused with 4 other glyphs.
The Wikipedia has the following information about this codepoint:
The Arabic script is the writing system used for Arabic and several other languages of Asia and Africa. It is the second-most widely used alphabetic writing system in the world (after the Latin script), the second-most widely used writing system in the world by number of countries using it, and the third-most by number of users (after the Latin and Chinese scripts).
The script was first used to write texts in Arabic, most notably the Quran, the holy book of Islam. With the religion's spread, it came to be used as the primary script for many language families, leading to the addition of new letters and other symbols. Such languages still using it are: Persian (Farsi and Dari), Malay (Jawi), Cham (Akhar Srak), Uyghur, Kurdish, Punjabi (Shahmukhi), Sindhi, Balti, Balochi, Pashto, Luri, Urdu, Kashmiri, Rohingya, Somali, Mandinka, and Mooré, among others. Until the 16th century, it was also used for some Spanish texts, and—prior to the script reform in 1928—it was the writing system of Turkish.
The script is written from right to left in a cursive style, in which most of the letters are written in slightly different forms according to whether they stand alone or are joined to a following or preceding letter. The script does not have capital letters. In most cases, the letters transcribe consonants, or consonants and a few vowels, so most Arabic alphabets are abjads, with the versions used for some languages, such as Kurdish dialect of Sorani, Uyghur, Mandarin, and Bosniak, being alphabets. It is the basis for the tradition of Arabic calligraphy.