Hamad was born on 6 February 1872, the second-born son of eight of Sheikh Isa bin Ali Al Khalifa (his elder brother predeceased him in 1893), and received a private education.

In 1926, Charles Belgrave was appointed the government advisor due to the unrest prevailing since 1919 over the application in Bahrain of the civil and criminal laws of the British Raj.

Starting as an economic advisor, he soon became a political, military, and judicial one as well, commanding the police, judiciary, health, customers, public works, and parks departments.

Although Belgrave's many duties spread him quite thin, he did manage to produce improvements in education, surveying, and internal security, serving until 1957.

Dealing with international conflicts in the region, Hamad developed electricity, water, health, and education in his territory during his reign.