The construction of the circuit was a national objective for Bahrain, initiated by the Crown Prince, Shaikh Salman bin Hamad Al Khalifa. The Crown Prince serves as the Honorary President of the Bahrain Motor Federation. The project was designed by German architect Hermann Tilke and executed by main contractor Cebarco-WCT. TRL, headed by Patrick Brogan, was tasked with building the facility.
The project cost approximately 56.2 million Bahraini Dinars (US$150 million). Because the venue is positioned in the middle of a desert, engineers addressed the threat of wind-blown sand by spraying a specialized adhesive on the surrounding dunes. The track surface itself was constructed using graywacke aggregate imported from Bayston Hill quarry in Shropshire, England, a material selected for the high level of grip it provides to racing tires.
The circuit's inaugural major event was the 2004 Bahrain Grand Prix. Leading up to the race, organizers expressed concerns that the facility would not be finished in time and requested a cancellation. This request was refused by Formula One supremo Bernie Ecclestone. Although the circuit was not fully complete by the deadline, it was deemed sufficient for the race to proceed on April 4, 2004. Following this debut, the track underwent a minor realignment at turn four ahead of the 2005 event, which reduced the total circuit length by five meters.
The circuit established itself as a versatile venue, hosting six separate tracks including a drag strip and a test oval. In 2006, it served as the Formula One season opener for the first time, swapping places with the Australian Grand Prix to avoid a conflict with the Commonwealth Games. That same year, the circuit began hosting the Australian V8 Supercars "Desert 400" event, which continued through 2010.
In 2010, to celebrate Formula One's "diamond jubilee," the race was conducted on the 6.299 km (3.914 mi) "Endurance Circuit" layout rather than the standard Grand Prix track. During the 2009 Grand Prix, the circuit announced a US$2bn collaboration with @bahrain, a part of the Mumtalakat group, to develop over 1 million square meters of business and entertainment space adjacent to the facility.
The circuit has faced significant disruptions due to regional and local circumstances. In 2011, civil unrest in Bahrain forced the cancellation of the Grand Prix. While the FIA initially attempted to reschedule the race for October 2011, organizers eventually cancelled the event entirely to focus on 2012.
In 2014, the circuit transitioned the Bahrain Grand Prix to a night race format to celebrate its tenth anniversary in Formula One. During the 2020 season, the COVID-19 pandemic led to the circuit hosting two distinct events: the Bahrain Grand Prix and the Sakhir Grand Prix, the latter of which utilized the "Outer Circuit" layout.
A notable safety incident occurred during pre-season testing for the 2024 Formula 1 season when a drain cover near turn 10 was dislodged by Charles Leclerc’s Ferrari SF-24, resulting in a red flag and the cancellation of the morning session. In 2026, the Grand Prix was cancelled due to conflicts within the Middle East.
The Bahrain International Circuit remains a primary hub for international motorsport, hosting the FIA World Endurance Championship 8 Hours of Bahrain, the FIA Formula 2 Championship, and the FIA Formula 3 Championship. Its technological standards were formally recognized by the FIA Institute Centre of Excellence award for its medical facilities, race marshals, and safety infrastructure.
Shortly after testing in February 2014, the circuit renamed its first corner after Michael Schumacher. This tribute was established to honor the seven-time champion's achievements and to show support following his skiing accident in late 2013.
The venue supports a wide array of international and regional categories. It has hosted the FIA GT Championship, the GP2 Asia Series, and the Speedcar Series. In 2004, it held the Bahrain Superprix for Formula Three cars following the collapse of the Korea Super Prix. It also served as the site for the first-ever Formula BMW World Final. Current non-racing events include the World Series of Darts Bahrain Darts Masters, held annually in January.