In a major step toward labor market transformation, Saudi Arabia has unveiled a new skill-based classification framework for expatriate work permits. This initiative aligns with the Kingdom’s Vision 2030 and the National Transformation Program, both aimed at modernizing the economy and optimizing the workforce.
As reported by TravelBiz, the new system changes how foreign workers are evaluated, employed, and managed in Saudi Arabia. The core objective is to enhance the alignment between workers’ skills and their job roles, thereby increasing overall productivity and supporting sustainable economic growth.
The phased rollout began on June 18, 2025, targeting existing expatriate workers. By July 6, the policy was fully enforced for all current foreign workers in the country. For new international recruits, the system will come into effect starting August 3.
Under this updated structure, expatriates are grouped into three main categories: high-skill, skilled, and basic. Classification is based on a combination of qualifications and the relevance of those qualifications to their job roles. This tiered system is designed to ensure better job placement and more efficient utilization of talent within the Kingdom.
Each individual will be assessed according to five key factors:
These criteria will be reviewed during both initial applications and the renewal of work permits, ensuring continuous compliance with the classification system.
This policy shift is part of Saudi Arabia’s broader efforts to diversify its economy beyond oil, attract high-caliber global talent, and make the labor market more efficient. By implementing a structured classification model, the government aims to eliminate the mismatch between qualifications and job responsibilities.
Broader Implications for Employers and Workers
Beyond regulatory updates, this reform significantly alters how companies engage with expatriate professionals. Employers must now tailor their hiring strategies, job descriptions, and compensation packages to reflect the new classification standards.
For foreign workers, the system introduces stricter scrutiny of educational and professional credentials. Expatriates are encouraged to review and validate their qualifications and experience to ensure compliance with the new criteria.
Ultimately, the initiative seeks to create a more dynamic and capable workforce that supports Saudi Arabia’s long-term economic ambitions and development goals.
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