What’s New?

Saudi Arabia has officially instituted a system of skill-based permits for all foreign workers. The new system is currently available through the Qiwa platform and will address the growing demand for talent across sectors such as tourism, construction, technology— especially as they continue to evolve mega-projects such as NEOM and The Red Sea Project. As of July 1, 2025, the policy is effective for all new hires, and, for existing workers, it began on June 18, 2025. The skill-based classification system will provide more clarity, improved match of skills, and an enhanced hiring experience for organizations and applicants alike.

Defining Skill Levels

All foreign workers will now be classified into three distinct levels:

1. High-skill
2. Skilled
3. Basic

The classification is based on:

1. Education level
2. Years of relevant experience
3. Technical or vocational skills
4. Wage level
5. Age

Example: A foreign worker in the high-skill category will generally maintain a managerial or professional role with higher wages and meet specific education and experience classification.

How the Process Works

The Qiwa platform carries out digital assessments. Employers and workers can both begin the classification/reclassification process. The process is flexible, thanks to a points-based system. If a worker has less formal education but good experience, they are still able to be at higher skill levels. Over time, if workers increase their salary, skill level, or qualification level, they can reclassify.

Important Dates

1. June 18, 2025: Reclassification starts for existing foreign workers
2. July 1, 2025: Mandatory classification for all new recruits begins
3. August 3, 2025: Full implementation for incoming workers

Occupational Groups

The new system aligns with the Saudi Unified Occupational Classification, covering 9 major job categories:

1. Managers
2. Professionals
3. Technicians and Assistant Technicians
4. Clerks
5. Sales and Services
6. Agricultural workers
7. Craftsmen
8. Machine Operators
9. Elementary Occupations

Indian Workers: A Key Workforce in Saudi Arabia

According to India’s Ministry of External Affairs, Saudi Arabia remains the number one destination for Indian workers. Currently, there are about 2.65 million Indians working in Saudi Arabia. This new system of assessment will help Indian professionals find a more formal and equitable path to employment.

Why This Matters

1. Increases the quality of hiring by aligning the skill level of hires with employer demand.
2. Facilitates access to major projects with qualified workers.
3. Allows foreign workers to relocate to Saudi Arabia to put their skills and knowledge to use.
4. Ensures fair job access with a digital process based on transparency.

In 2024, there are an estimated 15.7 million expats living in Saudi Arabia, making up 44.4% of the overall population. Nearly 90% of non-Saudis are between the working age of 15-64, meaning the correct timing of this reform is crucial.

Labour & Economic Effects

1. Saudi Arabia’s unemployment rate fell to 2.8% in Q1 2025
2. Among expats, the unemployment rate fell to just 0.8%
3. Expat remittances reached 78 billion ($3.41 billion) in February 2025

What Employers & Workers Should Do

Employers:

1. Review the classification of your team on Qiwa.
2. Confirm that all records are updated and accurate.

Workers:

1. Log in to Qiwa to check or request reclassification.
2. Have ready all relevant documents — degrees, certificates and work experience.

Saudi officials are stating that this reform will improve performance, attract talent, and bring global know-how to the Kingdom. This reform also aligns with the Professional Verification Program, which currently includes workers from 128 countries and plans to expand to 160.

In Summary:

Saudi Arabia’s new skill-based work permit is a positive, forward-thinking move. It brings more equity, flexibility and opportunity — especially to our highly qualified and highly senior foreign professionals looking to build their future in Saudi Arabia.