Comprehensive Guide to Work Permit Classification by Skill Categories in Saudi Arabia

The Kingdom of Saudi Arabia is at the forefront of nations striving to develop its economic environment and labor market, in line with the ambitious goals of Saudi Vision 2030 and the National Transformation Program. This direction is driven by strategic initiatives aimed at enhancing human capabilities, attracting talent, and improving the quality of life and work for residents.

Introduction: Saudi Vision 2030 and Labor Market Development

The Ministry of Human Resources and Social Development (MHRSD) reaffirms its steadfast commitment to regulating the labor market and developing human competencies, which directly aligns with the objectives of Saudi Vision 2030 and the National Transformation Program.¹ This endeavor aims to build a more attractive and efficient labor market, develop human capabilities, and generally improve the business environment.¹ The Vision includes ambitious plans to develop human capital in line with current and future labor market requirements, enhance youth readiness for employment, increase women's participation, and integrate people with disabilities.³ Furthermore, the Vision seeks to attract expatriate competencies that serve the national economy, while improving their working and living conditions.⁴

In this context, Ministerial Resolution No. (4602) dated (10/1/1447 AH) was issued regarding the classification of work permits by skill categories.² This resolution aims to establish a new mechanism and an advanced regulatory framework for recruiting non-Saudi workers into the labor market, by dividing work permits based on specific skill categories.² The strategic objectives of this resolution are numerous and include enhancing worker performance and transferring expertise to the Saudi market by attracting high-skilled individuals, and building an environment conducive to innovation and future investment by attracting talent.² The resolution also aims to strengthen compliance with the Saudi Standard Classification of Occupations, ensure that non-Saudi workers possess the necessary skills to meet the demands of the Saudi labor market, and implement best global practices in attracting high-level competencies and skills.² It also seeks to develop mechanisms for verification and understanding the distribution rates of skill categories among non-Saudi workers in the Kingdom, enabling establishments to manage them more effectively.²

This policy shift reflects a broader strategy that goes beyond mere labor regulation. The focus on "attracting higher skills," "high-level talents and skills," and "building an environment that supports innovation and investment" indicates a qualitative restructuring of the labor market.² This means a strategic shift from mass recruitment of labor to meet general needs, to a selective policy that focuses on the quality of skills and competencies serving the specific economic development goals outlined in Vision 2030, such as innovation and economic diversification.⁵ The goal here is not just to fill vacancies, but to raise productivity levels and transfer knowledge to the local economy.

Although the stated goal is to attract expatriate competencies, raising work permit standards to include qualifications, experience, wages, and skills will make the recruitment of basic or lower-skilled labor more difficult or costly.² At the same time, Vision 2030 and programs like "Nitaqat" aim to increase the Saudization rate.⁷ This system acts as an indirect mechanism to support Saudization. By making the recruitment of lower-skilled expatriate workers more complex or expensive, it incentivizes establishments to seek national competencies to fill these positions, or at least pushes them towards greater investment in training and qualifying citizens. This creates upward pressure on the quality of expatriate labor, leaving more room for national labor in categories that do not require very high skills. For comprehensive support in navigating these regulations and establishing your business in Saudi Arabia, you can explore services offered by

Motaded.⁸

Comprehensive Guide to the New Work Permit Classification by Skill Categories

To ensure a comprehensive understanding of the new system, it is essential to be familiar with the basic definitions and criteria on which the work permit classification is based.

Key Definitions in the Work Permit Classification System

• Ministry: Refers to the Ministry of Human Resources and Social Development.²

• Establishment: Means every project managed by a natural or legal person that employs one or more workers for remuneration, regardless of its type.²

• Non-Saudi Professional Worker: Is any non-Saudi natural person who works for an employer and under their management or supervision in return for remuneration, even if not under their direct oversight.²

• Skill Categories: A classification of work permits according to three main categories: High-Skilled, Skilled, and Basic.²

• Work Permit Classification Criteria: Determined based on five main axes: Educational Qualifications, Professional Experience, Professional Skills, Wage, and Age.²

The Saudi Standard Classification of Occupations (SSCO) and its Role

The new work permit classification system relies primarily on the Saudi Standard Classification of Occupations (SSCO), which was issued by Cabinet Resolution No. (660) dated 24/10/1441 AH.² This classification is the main reference for occupational data and information in the Kingdom, and aims to unify occupational classifications across all governmental and private entities.¹⁰

The Saudi Standard Classification of Occupations divides jobs into 9 main occupational groups, as follows ²:

1. Managers

2. Professionals

3. Technicians and Associate Professionals

4. Clerical Support Workers

5. Service and Sales Workers

6. Skilled Agricultural, Forestry, and Fishery Workers

7. Craft and Related Trades Workers

8. Plant and Machine Operators and Assemblers

9. Elementary Occupations

The Three Skill Categories: High-Skilled, Skilled, Basic

Work permits are classified into three main skill categories, each with its own characteristics and requirements:

• High-Skilled: This category targets professions that require high qualifications and experience, and are considered essential in contributing to innovation and knowledge transfer to the Saudi labor market.

• Skilled: This category includes professions that require intermediate to advanced skills, and are considered necessary to support various economic sectors in the Kingdom.

• Basic: This category includes professions that require simple or elementary skills, serving basic needs in the labor market.

The existence of the "Saudi Standard Classification of Occupations" as a primary reference, in addition to clear classification criteria, reduces variations in practices between establishments and government entities.¹⁰ This standardization enhances transparency in the labor market and reduces opportunities for manipulation or misclassification, leading to a more efficient and fair labor market. It also makes it easier for investors and workers to understand the requirements and expectations in the Saudi labor market.

It is noted that the system does not rely solely on academic qualifications or experience, but adds "Professional Skills," "Wage," and "Age" as essential criteria.² This reflects a broader view of competence and confirms that the Kingdom recognizes practical skills as a crucial element in the economic value of a worker, not just certificates. This can encourage investment in vocational training and skill development, and attract workers who may not have high university degrees but possess extensive practical experience and specialized skills.

To illustrate the relationship between occupational groups and skill categories, the following table provides an overview:

Detailed Criteria and Work Permit Classification Mechanism

The work permit classification mechanism relies on a set of specific criteria and a clear methodology for each skill category.

Five Classification Criteria

These criteria are the foundation upon which work permit classification is built ²:

• Educational Qualifications: Assessing the suitability of the worker's educational level to the requirements of the profession they will practice.

• Professional Experience: Verifying the availability of the required years of professional experience, which varies according to the specific requirements of each skill category.

• Professional Skills: Meeting the requirements of the Professional Accreditation Program, the application of which varies depending on the nature of the profession.

• Wage: The Ministry sets minimum wage thresholds for each skill category, and these thresholds vary based on the establishment's economic activity.

• Age: A specific age group is determined for each profession based on its nature and requirements.

Classification Methodology for Each Category

These criteria are applied within a balanced methodology to classify work permits for non-Saudi workers into the three categories ²:

• High-Skilled Category:

  • The profession must fall within main occupational groups (1 to 3) according to the Saudi Standard Classification of Occupations.

  • The worker's total wage must not be less than the minimum threshold determined by the Ministry for this category, based on the economic activity.

  • Successful completion of the Professional Accreditation Program requirements specified by the Ministry for main occupational groups (1 to 3).²

  • The worker must pass the points-based system determined by the Ministry for this category, which relies on Educational Qualifications, Professional Experience, and Wage.²

• Skilled Category:

  • The profession must fall under main occupational groups (4 to 8) according to the Saudi Standard Classification of Occupations.

  • The worker's total wage must not be less than the minimum threshold determined by the Ministry for this category.

  • Successful completion of the Professional Accreditation Program requirements specified by the Ministry for main occupational groups (4 to 8).²

  • The profession may fall within main occupational groups (1 to 3) if the worker does not meet the minimum wage threshold specified for the High-Skilled category.

• Basic Category:

  • The profession must fall under main occupational group (9) according to the Saudi Standard Classification of Occupations (Elementary Occupations).

  • Successful completion of the Professional Accreditation Program requirements specified by the Ministry for main occupational group (9), if applicable for the profession.²

  • The non-Saudi worker's age must not exceed (60) years.

  • The profession may fall within main occupational groups (1 to 8) if the worker does not meet the minimum wage threshold specified for the Skilled category.

Professional Accreditation Program

The Professional Accreditation Program aims to verify the qualifications and skills of workers and their compatibility with the requirements of the Saudi labor market.² This program consists of two main components:

• Qualification Verification: This component focuses on verifying the validity of the non-Saudi worker's qualifications and experience, and applies to main occupational groups 1 to 3.²

• Skills Verification: This component aims to ensure that the non-Saudi worker possesses the necessary skills by performing a practical and theoretical test in their field of specialization, and applies to main occupational groups 4 to 9.²

Points-Based System for High-Skilled Work Permits

The points-based system is used specifically to evaluate applicants for work permits within the High-Skilled category.² This system relies on three main criteria: Educational Qualifications, Professional Experience, and Wage. A specific number of points is allocated to each criterion based on the applicant's performance. If the total points obtained by the applicant exceed a certain threshold determined by the Ministry, they qualify for a high-skilled work permit.²

This system is characterized by its flexibility, allowing applicants to compensate for any deficiency in meeting some criteria with higher performance in other criteria. For example, if an applicant has extensive professional experience but does not meet the minimum educational qualification requirement, they can still qualify for a high-skilled work permit based on their strong performance in the experience and wage criteria.²

The five criteria (Qualifications, Experience, Skills, Wage, Age) combined with the points-based system for the High-Skilled category go beyond mere job classification.² Wage as a criterion directly links to the economic value of the worker. This system is designed to ensure that expatriate workers not only fill vacancies but also actively contribute to the Saudi economy through their skills and market value. This aims to reduce reliance on lower-skilled labor that may not add significant economic value, and directs recruitment towards labor that can drive growth and innovation.

Furthermore, linking the classification to professional accreditation (through practical and theoretical tests) and compliance with the Saudi Standard Classification of Occupations limits manipulation of job titles.² This contributes to combating commercial cover-up and irregular labor by ensuring that the worker's registered profession matches their actual skills and qualifications, and that wages reflect the true value of the work.¹¹ This enhances compliance and reduces irregular practices in the labor market, creating a more regulated and fair work environment.

The following table summarizes the main criteria for work permit classification by skill categories:

Implementation Stages of the New System and the Role of Qiwa Platform

To ensure smooth and effective implementation, the Ministry has designed a two-phase approach for the new system.²

Implementation Stages of the New System

• Phase 1: Classification of Work Permits for Workers Currently Employed in the Kingdom.

  • Start Date: Wednesday, July 5, 2025.²

  • Objective: This phase targets non-Saudi workers currently employed in the Kingdom, where their skill category will be assessed based on their registered professions and wages.²

• Phase 2: Classification of Work Permits for Incoming Workers to the Kingdom.

  • Start Date: Tuesday, August 3, 2025.²

  • Objective: This phase includes the classification of work permits for workers entering the Kingdom for the first time, according to the detailed classification mechanism in the guide.²

The classification process for both phases will be fully automated.²

The following table illustrates the implementation stages of the new work permit classification system:

Role of Qiwa Platform

The "Qiwa" platform plays a pivotal role in implementing the new work permit classification system. "Qiwa" is an integrated digital platform that provides all labor system services in Saudi Arabia, enabling various stakeholders (employees, government, and private establishments) to organize and monitor their transactions in an automated and immediate manner, reducing the need for paper-based dealings.¹³

• Display of Classification: The classification of work permits by skill categories will appear directly through the establishment's account in the Ministry's systems, specifically on the "Qiwa" platform.² This ensures transparency and immediate access to information.

• Procedures for Correcting Skill Category: If a worker's skill category is not accurately displayed, they can submit a request to correct their profession via the platform.² The classification is updated if the worker meets the specified criteria for the desired skill category.² For the current expatriate workforce, the classification can be corrected by ensuring that job data is accurately reflected in the work contract documented on the "Qiwa" platform.²

• Ability to Change Skill Category: Work permit holders have the flexibility to change their skill category, provided they meet the specified criteria for the skill category they wish to transition to.²

The repeated emphasis on "automation" and the "Qiwa platform" to support the classification process and profession correction is not limited to merely providing an electronic service.¹³ The use of the Qiwa platform as a central hub for labor market operations reflects the Kingdom's commitment to digital transformation not only to simplify procedures but also to enhance oversight and compliance. Automation reduces human intervention, increases the speed and accuracy of classification, and provides immediate data to the Ministry to assess the distribution of skill categories, enabling it to manage the labor market more effectively and efficiently. This enhances trust in the system and reduces opportunities for corruption or manual errors.

Furthermore, the Ministry's decision to implement the system in two phases (current workforce then incoming workforce) with different dates reflects a wise strategy to ensure a smooth transition and minimize potential disruptions in the labor market.² Starting with the current workforce allows establishments and workers to gradually adapt to the new system and address any challenges that may arise before applying it to new incoming workers, ensuring business environment stability and reducing operational risks for establishments.

Impact of the New Work Permit System on Investment and Business Environment in Saudi Arabia

The impact of the new work permit system is not limited to labor market regulation; it extends to enhancing the investment environment and attracting competencies, aligning with the Kingdom's major economic goals.

How the System Enhances the Attraction of Global Talent and Competencies

The Ministerial Resolution clearly aims to enhance worker performance and transfer expertise to the Saudi labor market by attracting higher skills, and building an environment that supports innovation and investment by attracting talent.² These objectives align with Vision 2030, which seeks to attract expatriate competencies suitable for the economy and improve their working and living conditions.⁴ Talent management is an integral part of strategic planning to enhance performance efficiency and promote flexibility in facing market changes.¹⁵ The points-based system for the High-Skilled category allows for flexibility in evaluation, enabling applicants with extensive experience but lower educational qualifications to qualify, thus expanding the targeted talent pool.²

Linking Labor Market Improvement to "Investing in Saudi Arabia" Goals

The strategic objectives of the system clearly link talent attraction with "building an environment that supports innovation and investment".² This integrates with the National Investment Strategy's goals to triple annual investments and significantly increase annual foreign direct investment flows to reach SAR 388 billion by 2030.¹¹ The new system contributes to achieving these goals by providing a qualified and highly competent workforce, making the Kingdom a more attractive investment destination for companies seeking specialized talent. Furthermore, improving working conditions for expatriates enhances the Kingdom's attractiveness as a global talent hub, which in turn supports investment efforts.⁴ For more information on investing in Saudi Arabia and related services, visit

Motaded's investment section.⁸

The new system reflects an understanding that investing in high-quality human capital is a key driver for financial investment. Global companies and investors seek markets that offer not only economic opportunities but also a skilled and reliable workforce. By raising and classifying the standards of expatriate labor, the Kingdom ensures that investors will find the necessary competencies to support their projects, reducing recruitment risks and increasing the attractiveness of the Saudi market as a destination for long-term investment and innovative projects.

Impact of the System on "Investment License in Saudi Arabia" and Business Environment Competitiveness

The updated Investment Law aims to facilitate the establishment of investments, ensure investor rights, and provide equal treatment, with a focus on transparent, efficient, and fair procedures.¹⁶ Providing classified and high-quality labor reduces operational risks for investors and improves their business efficiency, enhancing the competitiveness of the business environment in the Kingdom.¹¹ Conditions for obtaining an investment license include proving financial capability and sound financial standing ¹⁷, and the new system complements this by ensuring the quality of human capital. For assistance with obtaining an investment license in Saudi Arabia,

Motaded offers specialized services.⁸

By adopting a skill-based work permit classification system, the Kingdom positions itself among global economies that rely on attracting distinguished talent as part of their competitive strategy. This not only contributes to achieving Vision 2030's goals related to economic diversification and innovation but also enhances the Kingdom's position as a regional and global hub for business and knowledge, attracting more investments and companies seeking a developed and stimulating business environment.⁵

Role of the "Saudi Labor Office" (Ministry of Human Resources and Social Development) in this Transformation

The Ministry of Human Resources and Social Development is the authority responsible for issuing and renewing work permits, and it works to support individuals and establishments to ensure a dignified and stable work environment.¹⁹ The "Qiwa" platform, affiliated with the Ministry, is the main channel for providing work permit services and managing labor affairs, reflecting the Ministry's commitment to digital transformation and simplifying procedures.²² The Ministry strives to create a more attractive and efficient labor market, develop human competencies, and improve the business environment, in line with Vision 2030.¹ For guidance on Saudi labor laws and regulations,

Motaded provides relevant information and support.²⁴

Frequently Asked Questions about Work Permit Classification

To increase awareness and clarify key aspects of the new system, the Ministry addresses a number of frequently asked questions that employers and expatriate workers may have.²

• What are the different skill categories introduced? And what changes will occur in the labor market after implementing the work permit classification mechanism by skill categories?

  After implementing this mechanism, every non-Saudi worker, whether currently employed in the labor market or newly arriving in the Kingdom, will have their work permit classified into one of the following skill categories: High-Skilled, Skilled, or Basic.2 This new classification will appear through the establishment's account in the Ministry's systems, specifically on the "Qiwa" platform.2 This change aims to regulate the labor market more precisely and ensure that skills match job requirements.

• How does the points-based system work for applicants for high-skilled permits, and what criteria are taken into account?

  The points-based system evaluates applicants based on three main criteria: Educational Qualifications, Professional Experience, and Wage.2 A specific number of points is allocated to each criterion based on the applicant's performance. If the total points obtained by the applicant exceed a certain threshold determined by the Ministry, they will be eligible for a high-skilled work permit.2 This system is flexible, allowing for compensation for not meeting some criteria with stronger performance in others. For example, if an applicant has extensive experience but does not meet the minimum required in terms of education/experience, they can still obtain a high-skilled work permit based on their performance in the remaining criteria.2

• Will the new classification criteria apply to the current expatriate workforce in the Kingdom?

  Yes, the initial classification will apply to all expatriate workers currently employed in the Kingdom.2 The classification can be corrected by disclosing and ensuring that job data is accurately reflected in the work contract documented on the Qiwa platform.2 This ensures that the classification reflects the worker's actual profession and qualifications.

• Will work permit holders be allowed to change their skill category?

  Yes, work permit holders will have the flexibility to change their skill category.2 This is available provided they meet the specified criteria for the skill category they wish to transition to.2 This flexibility allows workers to develop their career path and adapt their classification to the evolution of their skills and experience.

The inclusion of a FAQ section in the official guide clarifies how the system works, how to correct errors, and the possibility of changing skill categories.² This section not only provides information but also reflects the Ministry's commitment to transparency and accountability towards all stakeholders. Providing clear mechanisms for correcting classification and the ability to change skill categories reassures workers and establishments that the system is fair and adaptable, which enhances confidence in the implementation process and reduces potential friction.

Conclusion and Recommendations

The new work permit classification system in Saudi Arabia is a strategic and pivotal step towards achieving the goals of Saudi Vision 2030, by transforming the labor market into a more attractive and efficient environment. This system enhances the quality of expatriate labor by applying strict criteria based on educational qualifications, professional experience, professional skills, wage, and age, supported by a professional accreditation program and a points-based system. This approach contributes to attracting global talent and competencies, which supports innovation and enhances the Kingdom's competitiveness as a leading investment destination. The "Qiwa" platform also confirms its pivotal role as a digital tool for automating processes and ensuring transparency and flexibility in work permit management.

In the long term, this system will lead to a more specialized and competitive labor market. It may lead to a reduction in the number of expatriate workers in basic categories and an increased focus on highly skilled labor, which supports Saudization goals and incentivizes investment in vocational training for citizens. It will also enhance the Kingdom's position as a magnet for global talent, contributing to the achievement of Vision 2030 for economic diversification and building a vibrant society.

To ensure compliance and maximize the benefits of this system, the following recommendations are provided for establishments and expatriate workers:

Recommendations for Establishments

• Review and Correct Classification: Establishments should review the current job classification of their workers on the "Qiwa" platform and ensure its alignment with the new criteria. In case of any inaccuracies, necessary correction requests should be initiated.

• Invest in Skill Development: It is advisable to invest in skill development programs for the current workforce to raise their skill category, which benefits both the establishment and the worker.

• Focus on Competencies During Recruitment: When recruiting new labor, focus should be on competencies that align with the requirements of the targeted skill categories to ensure compliance with the system and avoid any future challenges.

• Utilize System Flexibility: Establishments should leverage the system's flexibility in changing skill categories to suit changing business needs and the development of workers' skills.

Recommendations for Expatriate Workers

• Understand Classification Criteria: Expatriate workers are encouraged to review the new classification criteria and understand their current skill category.

• Develop Skills and Qualifications: Continuous work on developing skills and qualifications will enhance opportunities for moving to higher skill categories, opening new career prospects.

• Ensure Data Accuracy: Ensuring the accuracy of their professional data and documented employment contracts on the "Qiwa" platform is crucial, and submitting correction requests when needed to ensure their true professional status is reflected.