Saudi Arabia Launches New Skill-Based Work Permit System for Foreign Workers

Saudi Arabia is transforming its labor market with a new classification system for expatriate work permits. This initiative, part of Vision 2030, aims to enhance job matching, improve workforce quality, and streamline hiring processes across the Kingdom.

The Ministry of Human Resources recently announced this bold step to redefine how foreign workers are evaluated, hired, and managed in Saudi Arabia.

New Expatriate Work Permit Classification: Key Details

The new work permit system categorizes foreign workers into three skill levels:

• High-skill
• Skilled
• Basic

This classification aligns workforce planning with national development goals, supports economic diversification, and promotes knowledge transfer to Saudi nationals.

Rollout Timeline: What’s Changing and When?

• June 18, 2025: Classification for existing expatriate workers begins.
• July 6, 2025: Full implementation for all current expats occurs.
• August 3, 2025: The framework applies to all new expatriates entering Saudi Arabia for work.

The Ministry has released a detailed guidance manual on its official website, outlining the new system’s criteria and procedures. Employers and expatriates should consult these resources for the latest information.

How Will Expats Be Classified?

Expatriates will be assessed based on five criteria:

Reviewers will evaluate these criteria during both application and renewal processes. This helps employers match talent to their needs and creates a clearer hiring process.

Why This Matters for Employers and Workers

This change significantly impacts how companies hire and retain international talent. Here’s what it means:

• Employers must align recruitment with the new classification standards.
• Expatriates should review their qualifications to ensure compliance.
• Recruitment agencies need to adapt their processes to fit the new guidelines.

Goals Behind the New Classification

The Ministry of Human Resources has set several objectives for this policy:

• Improve job-to-skill matching to enhance productivity.
• Increase transparency and compliance in hiring practices.
• Promote merit-based recruitment in the private sector.
• Support long-term workforce planning aligned with national goals.
• Enhance job quality and career mobility for foreign professionals.

By refining the evaluation of expatriates, the government aims to create a more efficient and competitive labor market.

Supporting Economic Growth and Talent

This policy is part of a broader strategy to:

• Develop local human capital.
• Attract global expertise.
• Increase labor market efficiency.
• Reduce mismatches between qualifications and job roles.

By introducing this tiered structure, Saudi Arabia seeks to manage its foreign workforce more effectively while ensuring local economic benefits from skilled talent.

What Should You Do Now?

If you’re an employer, ensure your HR and recruitment teams understand the new framework. Adjust job offers, roles, and salaries to comply with the system. If you are a current expatriate, check your status under the new classification. If you plan to work in Saudi Arabia soon, verify that your qualifications meet the updated criteria.

In conclusion, Saudi Arabia’s new skill-based work permit system represents a significant shift in labor market dynamics. This initiative not only enhances the hiring process but also supports the Kingdom’s broader economic goals. Embrace these changes to maximize opportunities in the evolving job landscape.