I believe this is an Arab knife referred to as shafra. Here is a link for one on Artzi's website and he has a couple of other examples if you utilize the search function but all 3 with silver handle. However, the handle decoration on this one is not off of typical Arab decoration. If you read Artzi's description he comments how these are often mistaken as Nepalese due to Stone and Egerton.
http://www.oriental-arms.com/item.php?id=1891