logo
Saudi Arabia's skill-based work permit system reshapes expat employment landscape

Saudi Arabia's skill-based work permit system reshapes expat employment landscape

Saudi Gazette4 days ago
Saudi Gazette report
RIYADH — Saudi Arabia's new skill-based work permit system marks a major shift in the Kingdom's labor market regulation, aligning directly with the goals of Vision 2030 to foster a knowledge-based economy, attract global talent, and boost economic diversification.
Under the new classification, expatriate workers are grouped into three main categories — high-skill, skilled, and basic — based on a detailed assessment of qualifications, work experience, technical ability, wages, and age.
The system, which came into effect for existing workers on June 18 and for new arrivals from July 1, is already prompting businesses across the Kingdom to adapt their workforce planning and recruitment strategies.
Speaking to Saudi Gazette, Haider Hussain, Partner at Fragomen, called the system as a 'deliberate and sophisticated recalibration' of Saudi Arabia's human capital approach.
'This ensures the inflow of specialized expertise critical for developing emerging sectors while reducing reliance on traditional industries,' Hussain said.He noted that the measure enhances Saudi Arabia's position as a global business hub by introducing greater transparency and meritocracy in the labor market, ultimately improving governance and supporting foreign direct investment.With reclassification already underway for the current expatriate workforce, Hussain urged employers to conduct immediate and thorough workforce audits.'Every expatriate must now be assessed against the new criteria—academic credentials, certifications, experience, wages, and age,' he said, warning that delays could risk compliance and operational disruption.The second phase of implementation, beginning August 3, applies to new foreign hires.According to Hussain, HR departments must ensure all applicant documentation, including employment contracts and qualifications, meet the new requirements.'Recruitment strategies must now integrate these classifications from the outset,' he said.Looking ahead, Hussain predicted long-term operational and financial shifts for businesses.He expects reduced reliance on low-skilled labor, with companies re-evaluating workforce structures and potentially increasing investment in automation and the upskilling of local talent.'The focus will shift from hiring in volume to sourcing specialized talent with a strategic fit,' he said, adding that a more skilled workforce is likely to deliver stronger productivity and innovation.Over time, he noted, the new system will simplify immigration processes and speed up permit approvals for qualified applicants.However, Hussain warned that compliance may present challenges. Vague interpretations of terms like 'technical ability' or appropriate 'wage level' could lead to classification errors.He advised companies to establish internal mechanisms for regular assessment and reclassification to stay aligned with evolving roles and job market standards.He also stressed the importance of proactive internal communication.'Employers must explain the rationale behind the new system to their employees, reassure them of the company's support, and address any concerns about job security or residency status,' he said.The system reflects a broader vision to build a future-ready labor market in Saudi Arabia—one that prioritizes expertise, encourages innovation, and strengthens the Kingdom's competitiveness on the global stage.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Saudi Real Estate Smashes Records in 24 Months
Saudi Real Estate Smashes Records in 24 Months

Leaders

time13 hours ago

  • Leaders

Saudi Real Estate Smashes Records in 24 Months

Saudi Arabia's real estate market has experienced remarkable growth, recording transactions worth approximately SR1.2 trillion ($319.8 billion) between July 2023 and July 2025. This surge follows the implementation of a new property initiative, as announced by the General Real Estate Authority. The General Real Estate Authority revealed this impressive figure during the second edition of the Real Estate Brokerage Forum 2025. This event took place at the Riyadh International Convention and Exhibition Center, as reported by the Saudi Press Agency. Saudi Arabia's real estate sector is undergoing a significant transformation under Vision 2030, with the aim to increase home ownership to 70% by 2030, up from approximately 63.7% in 2023. The strategy focuses on expanding mortgage lending, diversifying financing options, and doubling mortgage activity through increased participation from banks. Impact of the New Property Initiative Tayseer Al-Mufarrej, the general director of strategic communication and official spokesperson for the authority, emphasized the initiative's impact during his keynote address. He stated that the system has facilitated over 8 million real estate transactions and licensed more than 86,000 brokers. Additionally, the approval of 75 digital platforms has enabled over 685,000 authorized listings. This transformation is driven by Vision 2030 and the Real Estate Brokerage Law, introduced in 2022. This law aims to professionalize property transactions through standardized contracts, broker licensing, and stricter oversight. These measures enhance transparency and protect consumers. Al-Mufarrej noted that the system has fundamentally transformed the sector's structure. It has turned brokerage into a licensed profession governed by regulations, clearly defining responsibilities and obligations. Growth in Transactions and Licensing Within its first year, the initiative led to a 17% increase in transactions, totaling SR605 billion in deals, prompting the licensing of tens of thousands of individual and corporate brokers, as well as digital platforms. During the forum's first panel discussion, titled 'Legislative Updates and Empowerment Opportunities in the Real Estate Brokerage System,' speakers highlighted the sector's enabling regulatory framework. This framework supports growth and fosters a reliable and sustainable environment. A second panel discussion, titled 'From Value Creation to Sustainable Sales,' focused on ongoing urban development in the Kingdom. Participants praised the governance measures and planning standards that have improved residential neighborhoods and elevated the quality of life for citizens. The forum, organized by the authority, is part of broader efforts to enhance the real estate business environment. These initiatives support economic growth and align with the comprehensive national real estate strategy. Short link :

Young Saudis will power the Kingdom's green future, says expert
Young Saudis will power the Kingdom's green future, says expert

Arab News

time14 hours ago

  • Arab News

Young Saudis will power the Kingdom's green future, says expert

RIYADH: As Saudi Arabia pursues its Vision 2030, sustainability has become a national priority. With more than 63 percent of the population under 30, young Saudis are emerging as key drivers of the Kingdom's green transition. Eman Alhajji, a scientific researcher and founder of the Saudi Youth for Sustainability initiative, believes the role of Saudi youths goes beyond participation. In 2021, she was named Young Changemaker for leading sustainability initiatives by Universita della Svizzera italiana during the MEM Summer Summit, in collaboration with the Middle East and North Africa Division of the Swiss Federal Department of Foreign Affairs. 'Young Saudis bring an intrinsic value rooted in their unique perspective,' she told Arab News. 'They possess a digital fluency and global awareness that allows them to seamlessly connect with international best practices and rapidly disseminate information.' This combination, she said, makes them 'indispensable partners in shaping a resilient and prosperous Kingdom.' The presence of younger generations is increasingly visible in major efforts such as the Saudi Green Initiative, the Middle East Green Initiative, and global platforms such as COP27 and COP16. We are not only nurturing a generation of environmental stewards but also cultivating a new generation of green entrepreneurs, engineers and digital innovators — ensuring that Saudi Arabia's economic diversification is synonymous with sustainable growth and technological leadership. Eman Alhajji, Saudi Youth for Sustainability initiative founder From renewable energy storage to sustainable agriculture and advanced recycling, youth-led initiatives can serve as incubators for the green economy. 'We are not only nurturing a generation of environmental stewards but also cultivating a new generation of green entrepreneurs, engineers and digital innovators — ensuring that Saudi Arabia's economic diversification is synonymous with sustainable growth and technological leadership.' A 2024 PwC report supports this, showing that 91 percent of Saudi youth are familiar with the United Nations Sustainable Development Goals, prioritizing quality education, clean water and sanitation, zero hunger, peace, justice and affordable clean energy. It also noted that young Saudis are showing increasing interest in fields such as health care, renewable energy and tourism, viewing them as ways to make an impact while building the future. Education remains a cornerstone. While AlHajji acknowledged progress in integrating sustainability into the Saudi school system, she called for more interdisciplinary and problem-based approaches. 'Sustainability should be seamlessly integrated across all subjects — from science and engineering to economics, urban planning, and even the arts — demonstrating its pervasive relevance,' she explained. Hanin Aljifri, CEO of the Saudi Youth for Sustainability organization, echoed the sentiment, while noting a gap between awareness and action. 'The biggest challenge isn't a lack of interest — it's a lack of clear starting points. Many young people simply don't know where to begin or how to take the first step.' Despite this, she remains optimistic. 'We've seen firsthand that a large number of youth in Saudi Arabia are eager to get involved in sustainability; they're passionate, motivated, and ready to contribute.'

Saudi Arabia and Syria to hold investment forum in Damascus to boost cooperation
Saudi Arabia and Syria to hold investment forum in Damascus to boost cooperation

Saudi Gazette

time18 hours ago

  • Saudi Gazette

Saudi Arabia and Syria to hold investment forum in Damascus to boost cooperation

Saudi Gazette report RIYADH — Saudi Arabia is moving forward with plans to deepen its bilateral ties with Syria through the launch of the Syrian-Saudi Investment Forum 2025, the Ministry of Investment announced on Tuesday. The initiative reflects the Kingdom's continued commitment to supporting Syria and contributing to its stability and prosperity. The forum aims to build on the historic ties and shared heritage between the two nations and strengthen economic cooperation in line with Saudi Arabia's strategic vision of regional integration and mutual benefit. Acting on the directives of Crown Prince Mohammed bin Salman, the Ministry of Investment has launched efforts to activate the role of the private sector in both countries by facilitating cross-border partnerships.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store