Saudi Arabia has initiated a major reform of its work permit system, according to the Saudi Press Agency (SPA), introducing a skill-based visa program set to take effect in August 2025. The move is expected to impact millions of foreign workers and advance the Kingdom’s ambitious Vision 2030 reforms.
Abandoning its traditional focus on job titles, the new system classifies expatriate workers according to verified qualifications, professional experience, and wages. The effort aims to align foreign talent with national development goals, advancing economic diversification, and addressing international demands for more equitable labor practices.
“The measure aims to enhance worker performance, attract global talent to transfer expertise and experience to the Saudi labor market, improve operational efficiency, benefit from international experience, and build an environment that supports innovation and the development of business models,” the SPA stated.
Under the new system, all foreign workers, both new arrivals and those already in the country, will be categorized into three tiers: high-skilled, skilled, and basic. Each level is determined through digital assessment, weighing the worker’s qualifications, professional experience, wage, age, and occupation.
The high-skilled tier applies to professionals like engineers, physicians, and IT experts, with selection based on a points system that takes into account academic background, income level, and employment history. The skilled category encompasses technicians and mid-level employees, assessed through verified experience and technical credentials.
Skilled and better-paid foreign workers are set to benefit the most under the new system. They will enjoy easier visa renewals, greater freedom to change jobs, and, for the first time, access to certain visas that do not require a sponsor. Some professionals and investors can now bypass the traditional kafala (sponsorship) system altogether, which previously required foreign workers to be tied to a local employer or sponsor in order to live and work in Saudi Arabia.
Additionally, the Qiwa, meaning strength in Arabic, digital platform designed to streamline the process of establishing and managing businesses in the Kingdom, offers workers greater independence by supporting evaluations and facilitating appeals.
For low-wage workers, the outlook is more challenging. The new system imposes stricter renewal requirements and aligns with the expansion of Saudization quotas, placing greater pressure on foreign labor in lower-tier jobs.
The reform is a part of Vision 2030, Saudi Arabia’s plan to diversify its economy and reduce its reliance on oil. By focusing on skilled and economically valuable talent, officials aim to raise workforce standards, close the gap between job roles and actual skills, and bring more Saudi nationals into leadership and technical positions.
At the same time, the changes are designed to attract foreign professionals needed for major projects such as NEOM, a high-tech megacity under development since 2017, located in northwestern Saudi Arabia, near the borders of Egypt and Jordan, and the Red Sea development project, a tourism and luxury development on the western coast of Saudi Arabia. The government also hopes to improve working conditions, promote gender equality, and bring labor rights closer to international standards.
Authorities have also revised minimum wage structures, introduced performance-linked compensation guidelines, and redefined end-of-service and retirement benefits, further signaling a shift toward regulated, rights-based employment.
To ease the transition, small and medium-sized businesses are being given more time and government-backed training support, as officials try to balance economic ambition with job market stability.
For multinational companies and global job seekers, the changes open doors to new opportunities in high-demand sectors such as technology, healthcare, engineering, and tourism. At the same time, businesses relying on low-wage labor face hiring uncertainty, with suspended temporary visas and tougher Saudization mandates reshaping recruitment in sectors like hospitality and construction.
Saudi Arabia’s skill-based visa overhaul is one of the region’s boldest labor reforms, making the Kingdom more appealing to top talent with sponsor-free visas, clearer career paths, and stronger worker protections.
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