New rule: Saudi Arabia launches new skill-based work permit system for expats

Dubai: Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD) has introduced a new decision to classify expatriate work permits into three main skill levels: high-skill, skilled, and basic.

The Ministry announced the move via its official X platform, stating that the decision aims to regulate the labour market, develop human capital, and build a more competitive and innovative business environment aligned with the goals of Saudi Vision 2030 and the National Transformation Program.

Implementation timeline and classification criteria

The classification process for existing expatriate workers began on June 18, 2025, with full implementation scheduled for July 6, 2025.

New expatriates entering the Kingdom will be subject to the classification system starting August 3, 2025.

A guidance manual detailing the new system is available on the Ministry’s official website. The classification will be based on several criteria, including:

• Educational qualifications

• Work experience

• Professional skills

• Wage level

• Age

Enhancing efficiency and attracting global talent

This skill-based system is part of HRSD’s broader effort to improve operational efficiency, attract global talent, and transfer expertise to the Saudi workforce. It also aims to:

• Improve employee performance

• Enhance verification and compliance mechanisms

• Align workers’ qualifications with job roles

• Strengthen innovation and future-ready business models

The new framework will enable better management of the skill-level distribution within the labor market and support long-term economic development by ensuring that expatriate workers meet clearly defined competency standards.