Nice. It looks to me to be a ‘Khanjali’ (a double-edged dagger or short sword originating from the Caucasus (Armenia, Azerbaijan, Georgia, and parts of Southern Russia). They were also widely supplied to the Ottoman Empire, Persia (Iran) and elsewhere in the first half of the 19th Century, often with Muslim inscriptions in Farsi or other Middle-Eastern languages on the blade, and other decorations produced by ethnic immigrant smiths and jewellers working in the Caucasus (mainly Tbilisi in Georgia).
The inscription on yours looks like it might be Farsi (Persian).
Google the term and you'll see lots of similar example