Chalhoub Group’s Green Energy Project in Saudi Arabia

Chalhoub Group, a leading luxury retail and distribution powerhouse in the Middle East, has strengthened its sustainability journey by signing a solar lease agreement with Yellow Door Energy to supply clean, renewable electricity to its state-of-the-art fulfilment hub in Riyadh, Saudi Arabia.

The agreement covers the development of an 848 kilowatt-peak (kWp) rooftop solar power plant that will operate entirely off-grid. Once commissioned, the system will allow the fulfilment hub to function without reliance on the local electricity utility, ensuring greater energy independence while significantly reducing environmental impact.

As part of the project, more than 1,380 high-efficiency solar panels will be installed across the facility’s rooftop. These panels are expected to generate approximately 1.2 million kilowatt-hours (kWh) of clean electricity during the first year of operation. The renewable energy produced will help cut around 460 metric tons of carbon emissions annually, marking a meaningful contribution to climate action and emissions reduction efforts in the Kingdom.

Construction of the solar plant has already begun, and the project is scheduled for completion by early 2026. Under the solar lease model, Yellow Door Energy will take full responsibility for financing, designing, constructing, commissioning, operating, and maintaining the solar power system throughout the lease period. This structure allows Chalhoub Group to benefit from clean energy without upfront capital expenditure or operational risk.

The solar lease approach also ensures long-term cost stability and predictable energy expenses, supporting business resilience while advancing sustainability objectives. By outsourcing technical and operational responsibilities, Chalhoub Group can remain focused on its core retail and logistics operations while accelerating progress toward its environmental, social, and governance (ESG) commitments.

Chalhoub Group has consistently emphasized that sustainability is a central pillar of its business strategy rather than an add-on initiative. The Riyadh solar project reflects the company’s broader efforts to reduce its environmental footprint, create responsible supply chains, and work closely with partners to drive positive impact across the region.

For Yellow Door Energy, the partnership further strengthens its role as a key enabler of corporate decarbonization across the Middle East and Africa. The company’s solar leasing model continues to attract businesses seeking reliable, cost-effective clean energy solutions without the complexities of asset ownership.

The project also aligns with Saudi Arabia’s national sustainability agenda and supports the Kingdom’s Net Zero by 2060 target. As the country expands renewable energy adoption across industries, initiatives such as this highlight the growing role of private-sector collaboration in achieving long-term climate and energy goals.

Once operational, the off-grid solar facility at Chalhoub Group’s Riyadh fulfilment hub will stand as a strong example of how large-scale logistics and retail infrastructure can transition to clean energy, proving that sustainability, operational efficiency, and business growth can move forward together.