Arash Borhani put the Iranian side ahead midway through the first half in the Group A clash at the Mohammed Bin Zayed Stadium.
However, Brazilian forward Ricardo Oliveira levelled for the hosts in the 63rd minute to give them the point that they needed to secure their passage into the knockout stage for the first time. They also became the first United Arab Emirates club to qualify for the knockout stage since Al Wahda in 2007.
Al Jazira entered the match with a perfect record after victories in their first three games including a smash-and-grab 2-1 win over Esteghlal at Tehran's Azadi Stadium two weeks ago.
But the visitors had the better of the early exchanges and took the lead in the 24th minute. Ferydoon Zandi was the architect of the goal, taking the ball to the left byline before cutting it back for Borhani to fire a first-time effort past Al Jazira goalkeeper Ali Khaseif.
The home side had a good chance to draw level right before half-time when Oliveira made a strong run that took him past three defenders before he put his shot wide of the left upright.
However the Brazilian would get on the scoresheet just after the hour mark with what would prove to be a crucial - if somewhat fortuitous - goal for his side. The Brazilian rose to meet Subait Khater's corner from the left but the ball hit his back rather than his head and looped past goalkeeper Mehdi Rahmati for the equaliser.
With the score remaining unchanged for the remaining 27 minutes, Al Jazira moved up to 10 points, four clear of Al Rayyan, who beat Nasaf 1-0 in the other Group A game, and five ahead of Esteghlal.
Al Jazira coach Caio Junior was delighted with his side's achievement.
"The draw was good for us because we are the first team to secure our place in the knockout stage and we made history by this achievement. I am extremely pleased with this and I want to thank all the players and our fans," said the Brazilian.
"Despite securing our place in the next round, we will continue with good motivation in the last two matches and we will play with our complete strength in order to finish on top of the group."
Esteghlal coach Parviz Mazloumi felt that his side deserved more out of the game.
"We came here to get the three points but at the end of the day we had to settle for a point," he said. "In the first half we played very well and we created several chances after controlling the proceedings and taking the lead.
"Personally speaking I'm not satisfied with the result especially as we were ahead before conceding a goal in the second period. We will have to continue with our aim to advance and try to go for all six points in the next two matches."