Saudi Arabia has introduced a new skill-based classification system for expatriate work permits as part of ongoing labour market reforms under Vision 2030 and the National Transformation Program.
According to TravelBiz, the new policy officially redefines how foreign workers are assessed, hired, and managed in the Kingdom, with a focus on improving job-to-skill alignment, boosting productivity, and supporting long-term economic goals.
The rollout began on June 18, 2025, for existing expatriate workers.
Full implementation for all current expats took effect on July 6, while the system will apply to all new foreign workers entering the Kingdom from August 3.
Under this system, expatriate workers are now classified into three categories which are high-skill, skilled, and basic, based on their qualifications and job relevance. The classification helps match workers to roles more effectively, ensuring that their expertise aligns with labour market needs.
Each worker will be evaluated based on five criteria such as education, years of professional experience, certified technical or vocational skills, wage level, and age. These factors will be assessed both when applying for and renewing a work permit, ensuring workers are placed in the appropriate category.
The move is aligned with Saudi Arabia’s broader economic strategy to reduce dependence on oil, attract international expertise, and strengthen the efficiency of its labour market. By introducing this tiered structure, the government hopes to minimize mismatches between qualifications and job roles.
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This policy introduces more than administrative changes, it reshapes how employers engage international talent. Companies are now required to align their recruitment practices, job offers, and salary structures with the new classification standards
- This policy shift significantly impacts how companies recruit and retain foreign talent. Employers must now align their hiring practices, job roles, and salary structures with the new classification.
- For expatriates, the new system means their qualifications and work history will be under greater scrutiny. Foreign professionals are advised to review and update their certifications, educational records, and professional experience to ensure they meet the classification criteria.
The goal is to improve job-to-skill alignment, enhance productivity, and support Saudi Arabia’s long-term economic and workforce planning.
