Saudi Arabia's new skill-based work permits for foreign workers explained

Business Standard

10-07-2025

Foreign workers entering Saudi Arabia, including thousands from India, will now be classified under a new skill-based work permit system that came into force on July 1, 2025. The change applies to all new recruits, while reclassification of existing expatriates began on June 18, according to the Saudi Press Agency and a ministerial notice.
Three categories based on qualifications and wages
The reform divides foreign workers into three skill levels — high-skill, skilled, and basic — using a combination of qualifications, work experience, technical capabilities, wages, and age. The reclassification is part of a broader effort by Saudi Arabia's Ministry of Human Resources and Social Development to streamline its labour market and match workforce capabilities with actual market requirements.
A digital evaluation process via the Qiwa platform has been introduced to standardise how workers are assessed.
According to the Saudi government, the demand for technically trained and experienced professionals has surged due to ongoing 'giga-projects' such as NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate. These projects span a range of sectors, including tourism, construction, and technology, and are being delivered under tight timelines.
Meanwhile, foreign workers continue to play a central role in Saudi Arabia's workforce, with 15.7 million expatriates making up 44.4 per cent of the total population as of 2024. Among those aged 15 to 64, 89.9 per cent of non-Saudis fall into the working-age bracket, based on data from the General Authority for Statistics (GASTAT).
For Indians workers, Saudi continues to be a preferred destination. According to India's Ministry of External Affairs, there are 2.65 million Indians working in Saudi Arabia. This number represents a significant portion of the Indian expatriate community in the Gulf region.
What's changing under Saudi Arabia's new work permit system
Skill-based classification: All foreign workers are now grouped into three categories — high-skill, skilled, and basic — based on qualifications, experience, technical skills, age, and wage level.
New hires vs existing staff: Classification began for new foreign workers on July 1, 2025. For those already in the country, it started on June 18.
Digital evaluation via Qiwa: Assessments will be carried out on the Qiwa platform, aligned with Saudi Arabia's official classification of professions and educational levels.
Implementation Timeline:
Phase 1 (from July 5, 2025): Classification applied to current expatriate workers in Saudi Arabia.
Phase 2 (from August 3, 2025): Mandatory for all new incoming workers.
Classification criteria:
According to the Saudi government, foreign workers are assessed using:
• Educational qualifications
• Years of relevant experience
• Practical/vocational skills
• Wage level
• Age bracket
Occupation groups:
Occupations are mapped to nine major groups in the Saudi Unified Occupational Classification, including:
• Managers
• Professionals• Technicians and assistants
• Clerks
• Sales and service workers
• Agricultural workers
• Craftsmen
• Machine operators
• Elementary occupations
Mechanism of classification:
Each applicant will be assigned a skill level depending on:
• Type of occupation
• Minimum educational level required
• Proof of experience and qualifications
• Wage threshold (varies by skill level)
• Age limits (e.g. for basic level, under 60)
For example:
A high-skill worker must belong to top 3 occupational groups, earn above a set wage, and meet the experience and qualification criteria.
A basic skill worker will usually be under 60 and belong to elementary roles.
Can workers change their classification?
Yes, if they later meet the criteria for a higher category (e.g. higher wage, updated qualifications), they may request reclassification via the ministry's online portal, the government stated.
Workforce planning and transparency
The new classification is intended to improve transparency and workforce planning, giving employers a clearer picture of skill availability. It also allows workers to request reassessment if they qualify for a higher category. The evaluation will follow a points-based system, giving weight to professional experience where formal education may be lacking, according to Saudi government.
'The measure is meant to improve worker performance, attract global talent to transfer expertise and experience to the Saudi labour market, and benefit from international knowledge,' said a report by the Saudi Press Agency.
This reclassification feeds into the ongoing Professional Verification Program, which was launched in 2021 and expanded last year. It verifies the educational and professional credentials of foreign workers across sectors such as engineering, healthcare and education before they enter the Kingdom. The programme currently covers 128 countries and is set to expand to 160.
Record low unemployment and steady remittances
Labour market indicators appear to be improving. The overall unemployment rate in Saudi Arabia dropped to 2.8 per cent in the first quarter of 2025 — the lowest on record — while the jobless rate among expatriates fell to 0.8 per cent, according to GASTAT.
At the same time, foreign workers continue to contribute to the Kingdom's economy. In February 2025 alone, remittances by expatriates reached SR12.78 billion ($3.41 billion), according to the Saudi Central Bank.
What employers and workers must do
The ministry has urged employers to review their workforce composition and complete the reclassification process on Qiwa. Workers who believe they meet the criteria for a higher classification can also submit reassessment requests through the platform.