Saudi Arabia unveils skill-based work permit system to attract global expertise

Monday 07 July 2025 - 11:20

By: Dakir Madiha

Saudi Arabia unveils skill-based work permit system to attract global expertise

Saudi Arabia has implemented a new classification system for expatriate work permits, aiming to enhance labor market efficiency, attract international talent, and align with the Kingdom’s Vision 2030 objectives. The initiative, announced by Minister of Human Resources and Social Development Ahmed al-Rajhi, divides foreign workers into three categories: high-skill, skilled, and basic. These classifications are based on qualifications, experience, technical abilities, wage levels, and age, according to the Saudi Press Agency (SPA).

New system details

Officially effective for incoming expatriates as of July 1, 2025, the system began reclassification for current residents on June 18. The initiative is central to Saudi Arabia’s push to meet the labor demands of its giga-projects, including NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate, which require highly skilled professionals in sectors such as construction, engineering, tourism, and technology.

According to SPA, the Ministry of Human Resources and Social Development stated that the system is designed to improve worker performance, attract expertise, and create an innovative, business-friendly environment. It also aims to optimize operational efficiency and leverage international knowledge and skills.

Implementation and evaluation

The reclassification process will be managed through the Qiwa platform, which utilizes the Unified Saudi Classification of Professions and Educational Levels. A digital assessment tool will ensure consistent evaluation and matching of workers to labor market needs.

This reform is expected to enable employers to access better-qualified employees, reduce mismatches between skills and job requirements, and gradually reduce reliance on low-skilled labor. Workers can request reassessments through a points-based system, which allows experience to compensate for gaps in formal education. Employers are urged to review workforce compositions and align with the new standards.

Labor market trends and broader initiatives

The initiative complements the ongoing Professional Verification Program, launched in 2021 and expanded in 2024, which assesses the qualifications of foreign workers before they arrive in Saudi Arabia. The program currently covers 128 countries and will expand to 160, focusing on sectors such as engineering, healthcare, and education.

The announcement coincides with positive labor market trends in Saudi Arabia. Unemployment among Saudis dropped to 2.8 percent in the first quarter of 2025 – the lowest on record – while non-Saudi unemployment fell to 0.8 percent. Expatriates continue to play a crucial role in the economy, representing 15.7 million people (44.4 percent of the population) in 2024, with nearly 90 percent of working-age expatriates employed in productive sectors.

Guidance for employers and workers

Employers are encouraged to use the Qiwa platform to reclassify their workforce, while employees meeting higher classification criteria can request reassessments. A detailed guidance manual outlining evaluation procedures and compliance requirements is available on the Ministry of Human Resources and Social Development’s official website.

This strategic reform underscores Saudi Arabia’s commitment to cultivating a skilled labor force capable of driving innovation and achieving the ambitious goals of Vision 2030.