The idea of establishing the club began when the ranks of the Youth Club witnessed 1957 a serious division in its leadership in 1957, which prompted Mr. Abdul Rahaman bin Saeed to resign from the presidency of the youth club in that year, and many left with him, including many big players left with him, including a number of prominent players.
The opportunity was ripe for the establishment of a new club at the first-class level to serve Saudi sports, and this was already done when a new club was established on 15 October 1957 in Riyadh. The club's name lasted for only one year before it was changed to its current name on 3 December 1958 by King Saud. After the establishment of the Saudi Pro League in 1970, Al Hilal won the competition twice, including the inaugural edition.
After a decade, the historic rivalry between Al Hilal and Al Ittihad had reached levels never seen before in Saudi football. Historically, since their first meeting, Al Hilal and Al Ittihad matches have always been aggressive and passion-filled spectacles that drew huge crowds due to both teams being from the two major Saudi cities of Riyadh and Jeddah.
The pinnacle moment of the era was in the 2007–08 season when Al Ittihad was leading the table the whole season with Al Hilal always right behind in second, the final match day pitted both teams against each other in the Prince Abdullah Al-Faisal Stadium in Jeddah with Al-Ittihad needing a draw at the minimum to clinch the league title at home.
In September 2022, Al Hilal offered Cristiano Ronaldo a two-year contract worth €242 million, and Ronaldo rejected the proposal. The President of the Saudi Arabian Football Federation, Yasser Al Misehal, said he would like to see Ronaldo play in Saudi Arabia. However, he signed up for rivals Al Nassr instead on 1 January 2023.
Al Hilal currently plays their home games at Kingdom Arena, a modern, multi-purpose stadium located in Riyadh, Saudi Arabia. Inaugurated in 2024, designed with a seating capacity of approximately 26,000 spectators, Kingdom Arena hosts a variety of events, including football matches, concerts, and entertainment shows.
In the 2024/25 season, the club has failed to win the Saudi Pro League title, where its fierce rival Al-Littihad won this time, so the hierarchy hired a new manager, Simone Inzaghi, and this time they will hope, the club will return to its old form, and again they will dominate the league, and won multiple trophies. However, they are more focused on making more money through their revenue and broadcasting and bringing new European top-flight players.