Saudi Arabia has taken another big step toward modernizing its workforce and reforming its labor market by introducing a new classification system for expatriate work permits.
Announced by Ahmed Al-Rajhi, the Minister of Human Resources and Social Development, the system classifies foreign workers into three distinct categories: high-skill, skilled, and basic.
The new framework officially came into effect for existing expatriates on June 18, 2025, while new arrivals will fall under these rules which are going to start on July 1. The ministry has also published a detailed guidance manual on its official website to assist employers and workers understand the new requirements.
This change is considered to be the major component of Saudi Arabia’s ambitious Vision 2030 and National Transformation Program, which is intended to diversify the economy away from oil dependence and create a more knowledge-based, sustainable, and globally competitive society.
Main role of the visa classification system
The new visa classification system is about finding the right people to be given the right job roles. By categorizing work permits based on skill levels, Saudi authorities hope to guarantee that foreign workers truly meet the qualifications and experience required for their roles, minimizing mismatches that hurt productivity and wage fairness.
Read more: Get set to visit UAE, Saudi, Oman, Kuwait, Qatar, Bahrain with Schengen-style GCC visa
Attracting top international talent
It’s also glanced as a way to get attention from the top international talent. With a clear and transparent system in place, the Kingdom is strongly hoping to send a strong signal to highly skilled professionals around the world that Saudi Arabia is serious about building an innovation-driven, globally connected economy.
A ministry spokesperson explained the move as “bringing international best practices into the Saudi labor market”, assisting to
- Standardize processes
- Improve verification
- Make the labor environment more dynamic, competitive, and transparent
For most of the foreign workers, the new system is expected to offer greater clarity and predictability regarding their
- Employment status
- Requirements
- Career prospects in the Kingdom
Employers, in turn, will get the advantages from streamlined processes and better alignment between job roles and worker skills.
Potential Implications of the New Visa Classification System
• Jobs as per the relevant qualifications: Chances for qualified candidates will be increased and only those who show proper alignment with role requirements, boosting productivity.
• Enhanced Talent Attraction: Makes Saudi Arabia more appealing to international professionals in various fields such as engineering, medicine, tech, finance, and other high-demand fields.
• Greater Transparency: Clear categories and requirements reduce ambiguity in the labor market.
• Stronger Verification: It assists to prevent fraudulent credential claims and guarantees quality of foreign hires.
• Economic Diversification: It is meant to show support for Vision 2030 by creating a more knowledge-based, innovation-friendly economy.
• Local upskilling: It is an impetus towards local upskilling to meet higher standards set by imported talent.
• Operational Efficiency: Simplifies processes for businesses and government agencies.
• International Standards: Aligns Saudi Arabia’s labor policies with global best practices, boosting investor confidence.
All-inclusively, we cannot say that this reform is all just about paperwork or visas — it’s about restructuring the very fabric of the Kingdom’s economy and society, guaranteeing that Saudi Arabia’s workplaces of the future are highly competitive, modern and prepared to meet global challenges head-on.