In a strategic move to modernize its labor market, Saudi Arabia has introduced a skill-based classification system for expatriate work permits. This new policy is part of the country’s broader reform agenda under Vision 2030 and the National Transformation Program, aiming to diversify the economy and boost workforce productivity.
Transforming Work Permits with Skill-Based Categories
Launched in phases beginning June 18, 2025, and fully implemented by July 6 for current expatriates, the system will extend to new international hires starting August 3. The framework categorizes foreign workers into three tiers based on their qualifications and relevance to their job roles:
- High-skill
- Skilled
- Basic
This structure is designed to improve job matching, reduce inefficiencies, and promote better utilization of talents across sectors.
Key Evaluation Criteria
Expatriates applying for work permits, or renewing them, will now be assessed on five core factors:
- Educational background
- Years of professional experience
- Certified technical or vocational skills
- Wage bracket
- Age
These criteria ensure that the right individuals are placed in roles that match their expertise, supporting long-term productivity and economic sustainability.
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What This Means for Employers and Workers
Employers in Saudi Arabia will need to adapt their recruitment strategies to align with the new standards. This includes updating job descriptions, salary structures, and internal evaluation systems to reflect the tiered classification model.
For foreign professionals, the reform means increased scrutiny of educational qualifications and work experience. Individuals are advised to verify and update their credentials to meet the system’s requirements.
Driving Sustainable Economic Growth
This policy marks a major shift in how Saudi Arabia manages its foreign workforce. By focusing on skill relevance, the country aims to attract top talent, reduce qualification mismatches, and build a more dynamic and efficient labor market.
As Saudi Arabia moves toward a knowledge-driven economy, this initiative is a vital step in supporting national development goals and reducing dependence on oil-based revenues.
