Well, the plot thickens....
I took it to the local Islamic Center and it was examined by their headmaster, who is a teacher of Arabic/Quran/calligraphy.
According to him, the script is quite crude and unsophisticated ( nothing beats Persian fake signatures of Assadullah
), and the inscription is "broken" in the middle:
It is "1" on the left, crudely embellished "Ali" in the middle (
GOOD JOB ALEX!!!) and "12" on the right.
According to him, one numeral at the beginning is missing as was often the case in Arabic writings; the full date must be read as either 1112 or 1012.
It sounds too good to be true: either 1603 or 1700 would make it the oldest dated Caucasian Kindjal blade known to man and beast!!!
I shall look for more Middle Eastern linguists ; now I am REALLY!!! intrigued