Fahd was the first son of Hassa Sudairi after her remarriage to the founder of the kingdom, Ibn Saʿūd. Court-educated in religion, chivalry, and politics, Fahd was named minister of education in 1953 and established a system of public elementary and secondary education. Later he undertook an earnest program of self-improvement, making up for his lack of formal schooling. In 1962 he was made minister of the interior and, in 1967, second deputy premier as well. During the reign (1964–75) of his half brother King Fayṣal, Fahd chaired several supreme councils dealing with such matters as national security, educational policy, and oil affairs. After Fayṣal's assassination, Khālid became king but left much of the country's administration to Fahd, whom he named crown prince. Fahd traveled extensively as a spokesman for the Arab world, and, in a highly publicized trip to the United States in 1977, he met with President Jimmy Carter to discuss peace in the Middle East and the Palestinian problem. In 1982 he succeeded Khālid as king.

Fahd was a consistent advocate of modernization and established a corps of Western-trained technicians to oversee the country's industrial diversification. In the 1970s and '80s he was also the principal architect of Saudi Arabia's foreign policy, which sought to counterbalance Soviet influence in the Middle East by providing financial aid to moderate states, notably Egypt. In 1990, after Iraq's invasion of neighbouring Kuwait, Fahd reversed a long-standing policy and invited Western and Arab forces to deploy in Saudi Arabia in support of the Saudi defense forces.

Fahd suffered a stroke in 1995 and on January 1, 1996, handed over control of the government to his half brother Crown Prince Abd Allāhʿ. Less than two months later Fahd returned to power, though ʿAbd Allāh continued to handle the day-to-day affairs of the country. Upon Fahd's death in 2005, ʿAbd Allāh was appointed king.