Before 1959, due to the strategic location of Arab Gulf region, the development of economic relations and the flourishing of commercial activity between Gulf countries and many countries, the region witnessed the circulation of a number of currencies. The Ottoman majidi riyal, French silver riyal (Maria Theresa Riyal), golden pound sterling and Indian silver and copper rupees all were traded, which strengthened the trade relations between Qatar and the exporting countries. 

In 1959, the government of India, in agreement with the Gulf Countries, issued a special currency for circulation in the Arab Gulf region called the Gulf Rupee. This currency in its gold content was equal to the Indian rupee circulating in India, but the Gulf rupee was different in shape as it was marked by the letter (Z) in English language, and was issued in four categories:

(One rupee, five rupees, ten rupees, one hundred rupees) 

Despite the fact that the Gulf rupee had the same trading price against the pound sterling as the Indian rupee, it was not a legal currency that could be traded in India, which raised the disappointment of Gulf merchants resulting that the Gulf rupee was phased out.

In September 1966, Qatar decided to form a currency council of Qatar and Dubai, which was assigned with the task of issuing a new currency called (Qatar-Dubai Riyal), which entered into circulation in September 1966.

The circulation of Qatari and Dubai riyals continued until the establishment of United Arab Emirates and the accession of Dubai to it, as it issued a new currency for it called the UAE dirham in 1973, which led to the liquidation of Qatar and Dubai Monetary Council and the transfer of its assets and liabilities to Qatar Monetary Agency, which a law was issued for establishing it in accordance with the provisions of Law No. (7) Issued on June 19, 1973 and issued for the first time a Qatari currency, the unit of which was the Qatari Riyal at that time. 

First Issue 1973: 1 riyal, 5 riyals, 10 riyals, 50 riyals, 100 riyals, 500 riyals. 

Second Issue 1983: 1 riyal, 5 riyals, 10 riyals, 50 riyals, 100 riyals, 500 riyals. 

Third Issue 1996: 1 riyal, 5 riyals, 10 riyals, 50 riyals, 100 riyals, 500 riyals. 

Fourth Issue (A) 2003: 1 riyal, 5 riyals, 10 riyals, 50 riyals, 100 riyals, 500 riyals. 

Fourth Issue 2007 (B), where the transparent window was added on two categories (100 and 500) riyals, as well as special specifications for the visually impaired and the blind on the rest of the other categories.

Fifth Issue 2020: The currency has been completely changed in designed and a new denomination of 200 riyals added.