This research tackles the ongoing challenge of unsustainable urban growth in Algeria by using the analytical hierarchy process (AHP) to enhance site selection for sustainable urban initiatives in M’Sila. The study used AHP’s systematic approach to develop a regional suitability map, including environmental, social, and economic factors. This differs from earlier ad-hoc methods, offering a clear and impartial assessment via pairwise comparisons. The resultant map delineates regions that reconcile project demands with sustainability goals. The versatility, openness, and ability of AHP to incorporate both quantitative and qualitative data are emphasized as primary strengths. The research highlights AHP’s substantial impact on enhancing urban planning in a resource-limited context, while recognizing constraints including data availability and subjective qualitative evaluations. The produced suitability map indicates that 46.31% (106.94 km²) of M’Sila is classified as very suitable, 21.44% (49.51 km²) as moderately suitable, 10.14% (23.42 km²) as weakly suitable, and 3.64% (8.41 km²) as unsuitable for sustainable urban growth. The technique included a two-phase process: the AHP phase is succeeded by GIS-based spatial representation. The results provide a crucial resource for Algerian policymakers and stakeholders, facilitating evidence-based decision-making and a transition to sustainable urban development methods amid rising urbanization and resource constraints. The research indicates that AHP offers a robust framework for addressing the difficulties of urban planning in resource-limited environments.