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Al Shahaniya was founded on 27 December 1998, under the name Al-Nasr, under the decision of Sheikh Mohammed Bin Eid Al Thani, who was the chairman of the Public Authority for youth and sports at the time. The club was considered as the spiritual successor of Al Nasr SC, an amateur football club founded in 1951. The club, whose name translates to "victory", became notable for being the first Qatari football team to play against clubs outside of the country as well as the first Qatari club to recruit foreigners.

At the beginning of its establishment, the club's headquarters were located in Al Jemailiya. In 2001, the club relocated to Al-Shahaniya, which is approximately 20 km northwest of Doha, under the decision of Sheikh Jassim bin Thamer al Thani, who was vice president of the Qatar Olympic Committee at that time. It was furnished with its own stadium and headquarters, although the stadium has primarily been used for training due to its limited capacity.

In 2004, the club changed its name to Al Shahaniya by decision of the board of directors, in order to better represent the region where it is based.