Saudi Arabia has launched a new skill-based classification system for expatriate work permits, marking a major milestone in the Kingdom’s ongoing labor market reforms under its ambitious Vision 2030 and National Transformation Program.
According to a report by TravelBiz, the new system officially redefines how foreign workers are assessed, hired, and managed, focusing on improving job-to-skill alignment, boosting overall productivity, and supporting long-term economic diversification goals.
The rollout of this new framework began on June 18, 2025, for existing expatriate workers. Full implementation for all current expatriates took effect on July 6, while the new system will apply to all new foreign workers entering the Kingdom starting August 3.
Under this classification system, expatriate workers are divided into three categories — high-skill, skilled, and basic — based on their qualifications, experience, and relevance to specific job roles. The goal is to ensure that each worker’s expertise matches the actual demands of the Saudi labor market.
Workers will be evaluated across five main criteria: educational qualifications, years of professional experience, certified technical or vocational skills, wage level, and age. These factors will be considered both at the point of work permit application and during renewals, ensuring a continuous alignment between workers’ capabilities and their roles.
Experts say this approach is part of Saudi Arabia’s broader strategy to reduce its reliance on oil revenue, attract top global talent, and foster a more competitive and efficient labor force. By implementing a tiered classification, the government aims to minimize mismatches between qualifications and job functions, a problem that has historically hampered productivity and economic growth in various sectors.
“This reform isn’t just about paperwork; it fundamentally changes how employers engage with international talent,” commented Dr. Hassan Al-Qurashi, a labor market policy analyst at King Saud University, in an interview with Arab News. “Companies will now need to design their recruitment strategies, salary offers, and career paths in line with these new classifications.”
For expatriate professionals, the new system means their educational backgrounds, skills, and work history will come under closer scrutiny. Many are advised to update and verify their qualifications, certifications, and professional records to ensure compliance with the new standards.
HR professionals across the Kingdom are also gearing up for this shift. “Employers must now take a more strategic approach to workforce planning, ensuring that each hire contributes to national economic objectives,” noted Gulf Business in its analysis of the policy implications.
In addition to promoting better job-to-skill alignment, this move is expected to strengthen the Kingdom’s attractiveness to global investors and international businesses looking for a highly qualified talent pool. It also signals Saudi Arabia’s commitment to creating a more transparent, merit-based labor environment — a crucial step toward positioning itself as a global economic powerhouse.
The Ministry of Human Resources and Social Development emphasized in a recent statement that this reform reflects the Kingdom’s ongoing efforts to build a knowledge-based economy and prepare for a future where innovation and expertise drive national growth.
As Vision 2030 continues to unfold, Saudi Arabia’s message is clear: the Kingdom is ready to welcome the world — but only those ready to match skills with purpose, and ambition with action.
