Qatar's historical flag was completely red, corresponding to the red flag traditionally used by Kharjite Muslims. In the 19th century, the country modified its all-red flag with the addition of a white vertical stripe on the hoist to conform to the British directive. After this addition, Sheikh Mohammed bin Thani officially adopted a purple-red and white patterned flag that closely resembled its modern derivative. Various additions were made to the Qatari flag in 1932, with the nine-pointed serrated edge, diamonds, and the word "Qatar" integrated into its design. The maroon color was standardized in 1949. In the 1960s, Sheikh Ali Al Thani removed the text and diamonds from the flag.  

Nine serrated edges separate the maroon and white portions. They signify the inclusion of Qatar as the ninth member of the "Reconciled Emirates" of the Persian Gulf at the conclusion of the treaty between Qatar and Great Britain in 1916.

The history of purple dye in the country dates back several centuries. It has been claimed that Qatar was the site of the earliest known production of shellfish dye during Kassite rule due to the presence of a purple dye industry in the Al Khor Islands. Qatar was also known for its purple dye production during the rule of the Sassanid Empire. Mohammed bin Thani, who ruled from 1847 to 1876, proposed creating a flag with a purple-red color to unify the state and highlight its historical role in dye production. In 1932, the British Navy suggested that an official flag be designed. According to the Qatari government, the British proposed that the flag be white and red, but Qatar rejected the red coloration and continued to use a mixture of purple and red instead. According to letters from the British political agent in the Persian Gulf to British India, the white cloth was purchased in Bahrain and was originally dyed red locally. The locally purchased dye was of poor quality and faded quickly, turning the flag a chocolate color. Due to the country's subtropical desert climate, the flag's colors were prone to being tinted darker by the sun, resulting in the eventual adoption of a maroon color in 1949. The white portion of the flag symbolizes the peace gained by signing anti-piracy treaties with the British.