Hamad was born in December 1950. He attended Britain's Royal Military Academy at Sandhurst, where he was known as an excellent athlete. Upon his return, he organized and subsidized athletic programs in Qatar. Sheik Hamad enjoyed preserving Bedouin traditions and often visited Bedouin tribes in the desert. Crown Prince Hamad was commander in chief of the armed forces from 1972 and minister of defense from 1977.

Prior to ascending to emir, Sheik Hamad managed the day-to-day government administration and Qatar's military affairs. He had major responsibility for petroleum, trade, and foreign policy. The 1995 coup followed two years of political rivalry between father and son. Soon after the coup, Sheik Hamad gave permission for Qatar's first official stock exchange to be located in Doha, the nation's capital. He also appointed a new cabinet, published the rules of government and royal succession, and named himself premier. He retained his posts as minister of defense and commander in chief of the armed forces. He named his brother, Sheik Abdullah ibn Khalifa al-Thani, as deputy premier. Regarded as a liberal Arab leader, Sheik Hamad had moved toward normalizing relations with Israel and had permitted the United States to begin building military facilities within Qatar.