Arraiolos is a town in south central Portugal that had a thriving needlepoint weaving tradition in the 17th and 18th centuries. The weavers of Arraiolos blended their own iconography with Safavid and Ottoman design elements. As seen in the current example, the medallions and cartouche border design are inspired by 16th and 17th century classical Tabriz carpets. This is a further indication of the European fascination with Oriental carpets at that time.
For a similar example dated to the 18th century, see F. Baptista de Oliveira, História e Técnica dos Tapetes de Arraiolos, Lisbon, 1991, p. 157, fig. 75.