Saudi Arabia Implements Skill-Based Work Permit System for Global Talent Attraction
Expatriates to be classified into high-skill, skilled, and basic categories based on qualifications and experience.
JEDDAH: In a move to streamline its labor market and attract global talent, Saudi Arabia has introduced a skill-based work permit system for expatriate employment.
The decision was issued by Minister of Human Resources and Social Development Ahmed Al-Rajhi, categorizing foreign workers into three tiers — high-skill, skilled, and basic — based on qualifications, experience, technical ability, wage level, and age.
This new system took effect for incoming workers on July 1, with the reclassification of existing expatriates beginning on June 18, as per Saudi Press Agency reports and a ministerial notice.The Kingdom's demand for skilled professionals is increasing, driven by large-scale giga-projects such as NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate.
These projects cover various sectors including construction, design, technology, and tourism, necessitating specialized foreign talent to meet strict timelines and global standards.The implementation of this system reflects a broader strategy aimed at enhancing productivity, addressing skill mismatches, and supporting Saudi Arabia's economic objectives under Vision 2030.
By improving worker performance, attracting expertise, increasing operational efficiency, and fostering an innovative environment, the reform seeks to better align workforce capabilities with market needs.A digital evaluation mechanism through the Qiwa platform, aligned with the Unified Saudi Classification of Professions and Educational Levels, is part of this new classification process.
This approach aims to improve transparency in workforce planning and encourage businesses to access higher-quality workers while gradually reducing reliance on low-skilled labor.The new policy is also linked to improving employment indicators.
The overall unemployment rate, including Saudis and expatriates, hit a historic low of 2.8 percent in the first quarter of 2025, down by 0.7 percentage points from the previous quarter.
Among non-Saudis, the unemployment rate fell to 0.8 percent, reflecting strong private sector demand and targeted recruitment aligned with workforce needs.Expatriates make up a significant portion of the labor market, accounting for 15.7 million people or 44.4 percent of the total population in 2024.
Within the working-age group (15-64 years), 89.9 percent of non-Saudis fall within this range, highlighting their importance to the Kingdom's productive sectors.The reclassification also integrates the Professional Verification Program, which was launched in 2021 and expanded in 2024 to verify educational and professional credentials from 128 countries before entering Saudi Arabia.
This initiative is set to expand to 160 countries.Additionally, the government monitors financial outflows related to foreign workers' remittances.
In February alone, expatriates sent out SR12.78 billion ($3.41 billion) in remittances, demonstrating their ongoing economic contribution to the Kingdom's economy.Employers are encouraged to review and reclassify their workforce through Qiwa, while workers can request reassessment if they meet criteria for higher categories.
A points-based system offers flexibility by allowing strengths such as hands-on experience to compensate for limitations in formal education.
The full guidance manual on this classification system is available on the ministry's official website.
The decision was issued by Minister of Human Resources and Social Development Ahmed Al-Rajhi, categorizing foreign workers into three tiers — high-skill, skilled, and basic — based on qualifications, experience, technical ability, wage level, and age.
This new system took effect for incoming workers on July 1, with the reclassification of existing expatriates beginning on June 18, as per Saudi Press Agency reports and a ministerial notice.The Kingdom's demand for skilled professionals is increasing, driven by large-scale giga-projects such as NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate.
These projects cover various sectors including construction, design, technology, and tourism, necessitating specialized foreign talent to meet strict timelines and global standards.The implementation of this system reflects a broader strategy aimed at enhancing productivity, addressing skill mismatches, and supporting Saudi Arabia's economic objectives under Vision 2030.
By improving worker performance, attracting expertise, increasing operational efficiency, and fostering an innovative environment, the reform seeks to better align workforce capabilities with market needs.A digital evaluation mechanism through the Qiwa platform, aligned with the Unified Saudi Classification of Professions and Educational Levels, is part of this new classification process.
This approach aims to improve transparency in workforce planning and encourage businesses to access higher-quality workers while gradually reducing reliance on low-skilled labor.The new policy is also linked to improving employment indicators.
The overall unemployment rate, including Saudis and expatriates, hit a historic low of 2.8 percent in the first quarter of 2025, down by 0.7 percentage points from the previous quarter.
Among non-Saudis, the unemployment rate fell to 0.8 percent, reflecting strong private sector demand and targeted recruitment aligned with workforce needs.Expatriates make up a significant portion of the labor market, accounting for 15.7 million people or 44.4 percent of the total population in 2024.
Within the working-age group (15-64 years), 89.9 percent of non-Saudis fall within this range, highlighting their importance to the Kingdom's productive sectors.The reclassification also integrates the Professional Verification Program, which was launched in 2021 and expanded in 2024 to verify educational and professional credentials from 128 countries before entering Saudi Arabia.
This initiative is set to expand to 160 countries.Additionally, the government monitors financial outflows related to foreign workers' remittances.
In February alone, expatriates sent out SR12.78 billion ($3.41 billion) in remittances, demonstrating their ongoing economic contribution to the Kingdom's economy.Employers are encouraged to review and reclassify their workforce through Qiwa, while workers can request reassessment if they meet criteria for higher categories.
A points-based system offers flexibility by allowing strengths such as hands-on experience to compensate for limitations in formal education.
The full guidance manual on this classification system is available on the ministry's official website.
