Benzema also had a goal ruled out for a push by Ronaldo in the build-up, but Madrid thought they had finally gone ahead when Casemiro's header deflected off an Al Jazira head and looped over Khaseif.
Real Madrid's players celebrate with the FIFA Club World Cup trophy following their victory in the final football match against Gremio FBPA at the Zayed Sports City Stadium in Abu Dhabi on December 16, 2017.
Gareth Bale also started the match from the bench, a pleasing sight for the fans, who have certainly missed him this season.
'It was a very unusual first half. They carried out a series of possession and pressing exercises, shots and goal and games on reduced-size pitches. It's our fifth trophy this year and now it's time to enjoy it.
The Al Jazira captain made an incredible stop to turn a deflected Ronaldo header onto the bar then got down well to parry efforts from Luka Modric and Karim Benzema.More news: Wreaths Across America at Seven Pines National Cemetery
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A monumental upset looked on when Al Jazira had the ball in the net for a second time two minutes into the second half.
"I like that there are no injuries, it is a good sign, a sign that we are all together and that the squad is very good". Bale took a feed from the right side from forward Lucas Vazquez.
"What I want is to win and if it's possible to score and help the team win this cup".
The 32-year-old's free-kick in the Club World Cup final against Gremio sealed a record-equaling third title as Madrid became the first side to the tournament in consecutive years. In last Tuesday at the first semi final, Gremio beat the Mexican club Pachuca by 1 - 0.