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Saudi Arabia has announced a major update to its work permit system for expatriate workers, classifying permits into three main skill categories: high-skill, skilled, and basic. The decision, issued by Minister of Human Resources and Social Development Ahmed Al Rajhi, is designed to enhance workforce efficiency and attract global talent.
Rise-Jobs on the rise: Saudi’s unemployment hits record low
The new classification system aims to align the skill levels of foreign workers with international standards, ensuring that expatriates meet job-specific qualifications. Authorities say the move will improve labor market operations, facilitate the transfer of global expertise, and support the Kingdom’s innovation-driven economy, a Saudi Press Agency report said.
According to the Ministry of Human Resources and Social Development (HRSD), the classification of existing work permits began on June 18 for current expatriate workers. For new arrivals, the updated permit system came into effect on July 1. The ministry has also published a comprehensive guide on its website outlining the full details of the initiative.
The ministry emphasised that the new system is part of a broader effort to build a more efficient, transparent, and attractive labor market in line with the country’s Vision 2030 and the National Transformation Program. By improving verification mechanisms and better managing skill distribution across the workforce, the government hopes to boost productivity and support sustainable economic growth.
Work permit reform aims to attract talent, boost innovation
The updated work permit structure reflects the government’s push to transform the labor market by bringing in high-skilled professionals and aligning expatriate job roles with actual qualifications. Officials say this shift will help modernise the economy and create an environment conducive to innovation and advanced business models.
The guidance manual released by the ministry provides employers and workers with a detailed overview of how the classification system operates and how qualifications will be evaluated.
Labor market sees strong growth in May
In a related development, the National Labor Observatory (NLO) released its latest report on the Saudi private labor market, providing key employment figures for May 2024.
The report showed continued growth in the number of private sector employees, with the total workforce reaching 11,370,796 by the end of May. Of this total, 2,358,227 were Saudi nationals—comprising 1,386,904 men and 971,323 women—while non-Saudi workers numbered 9,012,569, including 8,641,249 males and 371,320 females.
More Saudis entering the private sector
The labor report also highlighted a net gain in local employment, with 30,881 Saudi nationals joining the private sector for the first time in May. Officials consider this a positive trend in support of Saudisation efforts and long-term workforce development.
The NLO, established by Royal Decree in 2010, serves as the country’s primary source for labor market data. It regularly publishes labor indicators and monthly reports, including Overview of the Saudi Labor Market in the Private Sector, to inform policy and guide decision-making.
