Skill-Based Work Permit System Reshapes Expat Jobs in Saudi
Saudi Arabia has officially introduced a skill-based work permit system aimed at overhauling the structure of expatriate employment. The reform is a major milestone under the Kingdom’s Vision 2030 initiative, targeting a more efficient, competitive, and knowledge-driven labor market.
Key Features of the New System
The new permit classification, announced by the Ministry of Human Resources and Social Development (MHRSD), categorizes expatriate workers into three skill tiers:
- High-Skill
- Skilled
- Basic
Classification will depend on several factors, including:
- Educational qualifications
- Professional experience
- Technical competencies
- Wage levels
- Age and specialization
Implementation Timeline
- June 18, 2025: Reclassification of the existing expatriate workforce began.
- July 1, 2025: New hires must be onboarded under the new classification standards.
All employer data must be aligned with the Saudi Standard Classification of Occupations (SSCO) and updated in the Qiwa platform, the national labor portal.
Impact on Employers and Workers
For Employers:
- Required to audit and classify their workforce according to the new standards.
- Must integrate skill classification into hiring, payroll, and human resource management.
- Greater transparency will facilitate faster work permit approvals and help meet Saudization targets.
For Workers:
- Skill recognition could lead to faster permit renewals and career progression.
- Clearer job roles and expectations under a structured skill framework.
- Risk of misclassification if roles are not adequately matched with documented skills.
Strategic Goals
This reform aligns with Saudi Arabia’s broader economic diversification plans, which aim to:
- Reduce reliance on low-skilled foreign labor.
- Encourage employment of highly skilled professionals.
- Improve job market efficiency and boost foreign investment appeal.
Expert Insight
According to Haider Hussain, Partner at Fragomen Middle East, “This is a pivotal shift in Saudi Arabia’s labor market. Employers must respond proactively to remain compliant and competitive. The system will reward talent, but success will depend on clear classification and robust implementation.”
Conclusion
Saudi Arabia’s skill-based permit system is set to redefine the landscape of expatriate employment. As the Kingdom continues its transformation journey under Vision 2030, businesses and workers alike must adapt to a more performance- and skills-oriented regulatory environment.