Saudi Arabia Skill-Based Work Permit: KSA to Classify Permits by Worker Skills

Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD), under Minister Ahmed Al-Rajhi, has introduced a skill-based classification system for expatriate work permits. This reform aligns with Saudi Vision 2030 and the National Transformation Program, aiming to boost labor market efficiency and economic diversification.

The new system categorizes expatriate work permits into three levels: high-skill, skilled, and basic. It applies to new and existing foreign workers and based on educational qualifications, practical experience, professional skills, wage level, and age. A points-based approach allows flexibility, enabling workers with more experience to offset gaps in formal education. Only occupations in groups 1 to 3 of the Saudi Standard Classification of Occupations (SSCO) qualify.

Implementation Timeline:

• June 18, 2025: System updates began for existing expatriates.
• July 1, 2025: Applied to new incoming expatriates.
• July 6, 2025: Full implementation for all current expatriates.
• August 3, 2025: Mandatory classification for new arrivals.

Employers manage the process via the Qiwa platform. Workers may request reclassification through the same portal. A guidance manual is available on HRSD’s website.

This move follows labor market trends showing expatriates make up 44.4% of Saudi Arabia’s population, with key roles in construction, tech, tourism, and giga-projects like NEOM and Qiddiya. In Q1 2025, unemployment dropped to 2.8%, and non-Saudi unemployment was at 0.8%.

Remittances from expatriates reached SAR 12.78 billion ($3.41 billion) in February 2025. The system complements the expanded Professional Verification Program to match job skills with roles.

Saudi Arabia’s skill-based work permits reform supports workforce planning, local employment, and global talent attraction under Vision 2030 and Saudization goals.