This is a 12th century Hungarian coin, a bronze denier, in Hungarian respenz. It was issued by king Bela III (1172-1196). You can find it on Vcoins by typing "Bela III". The script is pseudo-Arabic.
Yay, Pellinore. I'd have never nailed that one down, though I would've noted the similarity to Arabic script, and I might've guessed the general era. That's all.
That is a very interesting coin. I have a scyphate (cup shaped coin) of Bella III that I am working on gently cleaning. I will post a picture one day when it is "done". John
Ottomans in 12th century were not a threat to Hungary yet. It seems that the reason for kufic(stylized early written arabic) on these coins is still unknown. There are various speculations, among which is the one about it being struck in order to be used by hungarian knights joining the crusades.