Saudi Arabia Rolls Out New Skill-Based Work Permit System for Expats

Saudi Arabia has taken a bold step towards reshaping its labour market by launching a new classification system for expatriate work permits. Announced by the Ministry of Human Resources, this initiative is set to transform how foreign workers are assessed, hired, and managed across the Kingdom.

New Expatriate Work Permit Classification: Key Details

The new work permit system, rolled out as part of Saudi Arabia’s ambitious Vision 2030 and National Transformation Program, classifies foreign workers into three distinct categories:

Saudi Arabia designed this move to align workforce planning with national development goals, support economic diversification, and facilitate the transfer of expertise to Saudi nationals.

Rollout Timeline: What’s Changing and When?

• June 18, 2025: Classification began for existing expatriate workers.
• July 6, 2025: Full implementation for all current expats.
• August 3, 2025: The framework will apply to all new expatriates entering Saudi Arabia for employment.

The Ministry has published a comprehensive guidance manual on its official website, detailing the new system’s criteria and procedures. Employers and expats are encouraged to consult these resources for up-to-date information.

How Will Expats Be Classified?

Each expatriate will be assessed using a combination of five criteria:

Criteria	Details
Education	Relevant academic qualifications for the job
Experience	Number of years in related professional roles
Skills	Certified technical or vocational competencies
Wage Level	Salary aligned with defined thresholds for each skill category
Age	Worker’s age at the time of permit issuance

Reviewers will assess these criteria during both the application and renewal of work permits to place each worker in the appropriate skill category. This helps employers match talent more effectively to their business needs and creates a more transparent hiring process.

Why This Matters for Employers and Workers

This isn’t just a paperwork change. The reclassification affects how companies hire, plan, and retain international talent. Here’s what it means in practice:

• Employers must now align recruitment with classification standards.
• Expats should review their qualifications and documentation to ensure compliance.
• Recruitment agencies will need to adapt their processes to match the new guidelines.

What Are the Goals Behind the New Classification?

The HRSD laid out several objectives behind this policy shift:

• Better job-to-skill matching to boost productivity
• Higher transparency and compliance in hiring practices
• Encouraging merit-based recruitment in the private sector
• Supporting long-term workforce planning aligned with national development goals
• Improving job quality and career mobility for foreign professionals

By refining how expat workers are evaluated, the government hopes to build a more efficient, competitive, and accountable labour market.

Supporting Economic Growth and Talent

This policy isn’t happening in a vacuum. It’s part of a larger effort to:

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

By introducing this tiered structure, Saudi Arabia aims to manage the structure of its foreign workforce more effectively, while ensuring the local economy benefits from skilled talent and knowledge transfer.

What Should You Do Now?

If you’re an employer, make sure your HR and recruitment teams are familiar with the new framework. Adjust job offers, roles, and salaries to align with the system.

If you’re a current expat, check your status under the new classification. If you plan to work in Saudi Arabia soon, make sure your qualifications and documentation meet the updated criteria.