Saudi Arabia launches new skill-based work permit system to attract global talent

Al Arabiya

14 hours ago

Saudi Arabia has introduced a new classification system for expatriate work permits as part of its efforts to enhance labor market efficiency, attract international expertise, and support the Kingdom's Vision 2030 goals.
The initiative, announced by Minister of Human Resources and Social Development Ahmed al-Rajhi, will categorize foreign workers into three tiers: high-skill, skilled, and basic, based on factors such as qualifications, experience, technical abilities, wage levels, and age, the Saudi Press Agency (SPA) reported.
The system officially came into effect for incoming expatriates on July 1, while reclassification for current residents began on June 18, according to the ministry.
The reform comes as Saudi Arabia accelerates development of its flagship giga-projects – including NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate – which require a growing number of highly skilled professionals across sectors such as construction, engineering, tourism, and technology.
According to SPA, the ministry stated that the new system is designed to 'enhance worker performance, attract global talent to transfer expertise and experience to the Saudi labor market, improve operational efficiency, benefit from international experience, and build an environment that supports innovation and the development of business models.'
The reclassification will be implemented through the Qiwa platform and is aligned with the Unified Saudi Classification of Professions and Educational Levels.
A unified digital assessment tool will ensure workers are evaluated consistently and matched to labor market needs.
Authorities say this measure will help employers access better-qualified workers, reduce mismatches between skills and job requirements, and gradually lessen dependence on low-skilled labor.
Encouraging labor market trends
The announcement follows encouraging labor market trends in the Kingdom.
The overall unemployment rate in Saudi Arabia dropped to 2.8 percent in the first quarter of 2025 – the lowest on record – while the unemployment rate for non-Saudis declined to 0.8 percent, according to figures from the General Authority for Statistics (GASTAT). This reflects rising demand in the private sector and targeted recruitment aligned with sector-specific workforce requirements.
Expatriates continue to play a vital role in the Saudi economy, representing 15.7 million people – or 44.4 percent of the total population – in 2024.
Among working-age expatriates (aged 15 to 64), 89.9 percent are employed in productive sectors, according to GASTAT data.
The new classification also complements the Professional Verification Program, launched in 2021 and expanded in 2024, which verifies the qualifications of foreign workers prior to arrival in the Kingdom.
The initiative currently covers 128 countries and is expected to expand to 160, with a focus on key sectors such as engineering, healthcare, and education.
Employers have been urged to review their workforce composition and reclassify employees accordingly through the Qiwa platform. The ministry's guidance also allows workers to request reassessments if they meet criteria for higher classifications. A points-based evaluation system will provide flexibility by allowing experience to compensate for gaps in formal education.
The ministry said the complete guidance manual, detailing evaluation procedures and compliance requirements, is available on its official website.