The airport is named for King Fahd (r. 1982–2005), under whose reign it was constructed and inaugurated. As part of the government-run Airports Development Program, the planning stages for the third and final international airport began in 1976. The site master plan was created by architecture firm Yamasaki & Associates and Boeing and completed in 1977, with construction beginning in 1983. The basic infrastructure of the airport was complete by the end of 1990, which allowed the U.S-led coalition forces to use the airport during the Gulf War in early 1991 for the storage of military aircraft, including 144 A-10 Thunderbolt IIs, among other aircraft such as the AH-64 Apaches and CH-47 Chinooks of the 101st Airborne Division, before operations were transferred to the Ahmad al-Jaber Air Base in Kuwait.

The General Authority of Civil Aviation of Saudi Arabia inaugurated the King Fahd International Airport and opened it to commercial traffic on 28 November 1999, and all airlines transferred their operations from the Dhahran International Airport, which had been in use until then. Dhahran International has since been converted for military usage and was designated the King Abdulaziz Air Base.

As part of the Saudi Vision 2030 and the National Transformation Program, King Fahd International was corporatized in July 2017 under the Dammam Airports Company (DACO), which operates and maintains the airport. In an effort to mitigate the spread of COVID-19, all domestic and international flights were suspended until further notice on 21 March 2020. Following strict curfews and lowering in case numbers, domestic flights were allowed to operate once again on 31 May 2020. International flights finally resumed on 18 May 2021.