Chalhoub Group is accelerating its sustainability initiatives in Saudi Arabia by collaborating with Yellow Door Energy to bring solar power to its Riyadh fulfilment hub
Chalhoub Group, a premier luxury retailer in the Middle East, and Yellow Door Energy, the leading sustainable energy partner for businesses in the Middle East and Africa, have signed a solar lease agreement to bring clean electricity to Chalhoub Group’s state-of-the-art fulfilment hub in Riyadh, Saudi Arabia.
The 848 kilowatt-peak (kWp) solar project features a rooftop solar power plant that will be 100% off-grid, removing reliance on the local utility’s grid. Over 1,380 solar panels will be installed, which are expected to generate 1.2 million kilowatt-hours (kWh) of clean energy in the first year of operation. This is equivalent to reducing carbon emissions by 460 metric tons.
Construction has already started, and the project is expected to be completed by early 2026. Under the solar lease agreement, Yellow Door Energy is responsible for financing, designing, constructing, commissioning, operating, and maintaining the solar power plant.
The solar lease model enables Chalhoub Group to enjoy the benefits of clean energy without operational risk, allowing the company to focus on its core business while advancing its sustainability objectives.
Mohammed Aldabbagh, KSA Managing Director at Chalhoub Group, commented: “At Chalhoub Group, sustainability is at the heart of everything we do: it is embedded in our purpose and business model, not an add-on. Our solar lease with Yellow Door Energy is a tangible step in bringing our ESG commitments to life, reflecting our dedication to the planet, our people, and our partners. Through initiatives like this, we aim to reduce our environmental footprint, foster inclusive and empowering workplaces, and work collaboratively with our partners to drive meaningful change. Projects such as this allow us to contribute positively to Saudi Arabia’s sustainability ambitions while continuing to inspire and delight our customers.”
Khaled Chebaro, Country Director KSA at Yellow Door Energy, said: “We are honored to partner with Chalhoub Group, an iconic luxury retailer that has been adorning the Middle East since 1955. Through the solar lease, significant cost savings and carbon emissions reductions will be achieved, demonstrating that what is good for the planet is also good for business. The Kingdom of Saudi Arabia continues to lead the region in its sustainability stewardship. This solar lease reinforces that leadership and supports the Kingdom’s Net Zero by 2060 target.”
