RIYADH: Soudah Development, a company backed by the Public Investment Fund, is placing sustainability at the core of its plan to transform Saudi Arabia’s southern region into a premier ultra-luxury destination.
The company's commitment to ecological preservation and long-term climate resilience was highlighted at COP16 in Riyadh.
Speaking to Arab News on the sidelines of COP16 in Riyadh, Srdan Susic, chief destination sustainability, highlighted the company’s approach to integrating environmental concerns with development goals. “We believe that without nature, you don’t have the people. Without people, you don’t have heritage. Without nature, without heritage, you don’t have a destination that we want to build,” he said.
Soudah’s sustainability strategy includes proactive climate adaptation, ecosystem restoration, and rewilding. To date, the company has planted nearly 250,000 native trees, with a goal of one million by 2030. In addition, flagship species have been reintroduced into protected areas to promote natural recovery.
“We want our ecosystems to continue providing ecosystem services for the communities who live there and for future visitors,” Susic added.
The company is also focused on preparing for the long-term challenges of climate change. “Climate change adaptation is a process where you say there is climate change, there are going to be negative effects. Let me get as better prepared as I can for the future to mitigate these effects,” Susic explained.
He emphasized that this approach would not only ensure sustainability but also enhance operational efficiency and financial viability.
“Our hotel and other asset operators will be more willing to come to us because we are aware of our sustainability goals. Our insurers, the companies who will insure our assets for the next 40, 50, or 60 years of operation, will charge us less money because we know what the risks are and how to mitigate them.”
Located at 3,015 meters above sea level, the Soudah Development project will feature 3,000 ultra-luxury hotel rooms, villas, and second homes, along with retail and infrastructure developments.
It is expected to create jobs and provide new economic opportunities for local communities. “Soudah is very proud that we are a very important part of this vision and that we are helping to reduce the oil dependency of this country,” Susic said.
Partnerships and future plans
The company is finalizing several memoranda of understanding with government entities and a royal commission, aimed at supporting reforestation efforts and increasing the region’s biodiversity.
One such agreement, with the Saudi Coffee Co., will involve planting coffee trees to boost both the local environment and the economy. “The agreements Soudah is planning to sign by the end of the year are very implementable, very efficient, and very precise,” Susic noted.
Soudah Development’s efforts align with Saudi Arabia’s broader economic diversification goals. “We believe that Saudi Arabia is doing a big shift in its economic planning for the next generation to come,” Susic said.
With a focus on tangible outcomes, Soudah Development aims to lead by example. “If you read our sustainability reports, you will see that we use past tense — we have done a lot,” Susic said.
As COP16 highlights global sustainability initiatives, Soudah Development’s work underscores how luxury destinations can be developed while preserving nature and supporting local communities.
