Saudi Arabia rolls out skill-based work permit system to attract global talent

Saudi Arabia has launched a new classification system for expatriate work permits as part of its ongoing efforts to regulate the labour market and align workforce planning with national development goals. The system, announced by the Ministry of Human Resources and Social Development (HRSD), categorises foreign workers into three main skill levels: high-skill, skilled, and basic.

The initiative is part of the Kingdom’s Vision 2030 and the National Transformation Program, aiming to boost labour market competitiveness, support economic diversification, and transfer expertise to the Saudi workforce, Gulf News reports.

Classification timeline and rollout

The classification process for existing expatriate workers began on June 18, 2025, and was fully implemented by July 6, 2025. From August 3, 2025, the classification framework will also apply to all new expatriates entering the country for employment.

The Ministry confirmed the timeline through its official announcement on its X account, where it outlined the system’s objectives and implementation schedule. A guidance manual has also been made available on the Ministry’s website, offering detailed criteria and procedures.

Criteria for classification

Under the new system, expatriate workers will be assessed based on the following factors:

• Educational qualifications: The academic level relevant to the job position.
• Work experience: Years of industry-relevant professional background.
• Professional skills: Recognised technical or vocational competencies.
• Wage level: Salary benchmarks set for different job categories.
• Age: Worker’s age at the time of permit issuance.

These elements will be reviewed during the permit application or renewal process, and workers will be categorised accordingly. This classification will apply across sectors and job roles, helping employers and authorities better match workforce needs.

Objectives and policy goals

According to the Ministry, the primary objectives of the new skill-based permit system are to:

• Improve worker performance by ensuring that individuals have the required competencies for their roles.
• Enhance compliance and verification through a structured evaluation framework.
• Strengthen innovation in the business sector by encouraging firms to hire according to merit and skill.
• Support long-term planning by aligning workforce availability with national economic goals.

The new system also aims to streamline human resource management for employers, reduce labour mismatches, and create a more transparent and accountable environment in Saudi Arabia’s private sector.

Supporting National development

HRSD said the policy is part of a broader strategy to develop human capital, attract international expertise, and improve labour mobility. It is also designed to create clear career paths for skilled workers and enhance job quality across sectors.

By introducing this skill-tiered classification, Saudi Arabia seeks to manage the structure of its expatriate workforce more efficiently, supporting both domestic employment goals and private sector growth.

The Ministry has urged employers and recruitment agencies to familiarise themselves with the new classification standards and update their hiring practices accordingly. Existing expatriates are advised to review their classification status and ensure their documentation meets the new criteria.

Further updates and clarifications are expected as the Ministry continues to monitor implementation and gather feedback from stakeholders across the labour market.