Shihabi was born in Riyadh, Saudi Arabia, and was raised in Saudi Arabia, Beirut, and Dubai. Her family is of Arab and European origin. She described her multi-ethnic background as such: "I consider myself Arab European because my father Ali Shihabi is half-Saudi, half-Norwegian, and my mom Nadia is half-Palestinian, half-German and Haitian, but raised in France." She stated that she enjoyed watching films from an early age. Shihabi's father is a commentator on Saudi politics and former banker. He was the chairman of Saudi Hollandi Bank.
At age 11 she began taking dance lessons from Sharmila Kamte, a renowned dance teacher at the Dubai Community Theatre and Arts Centre Chaloub Studio, known as the "dancing queen" of the United Arab Emirates. She became a member of her modern professional dance team.[citation needed]
In Dubai she attended Al Mawakeb School, Emirates International School, and Dubai American Academy. Shihabi performed in numerous school plays, and was encouraged by her teacher, Nancy Mock, to pursue an acting career.

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