Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has introduced a new system for categorising expatriate workers, dividing them into three distinct skill groups: High-Skilled, Skilled, and Basic. While the policy doesn’t yet trigger any direct changes to work permits or visa requirements, it sets the tone for a more structured and strategic approach to managing foreign labour in the Kingdom.
Though currently administrative in nature, this move signals a shift toward a more data-led and future-ready labour market, one that draws inspiration from international models like those in the UK, Canada, and Australia, where work visa decisions are based on salary thresholds, qualifications, occupation type, and local labour market conditions.
A Framework That Looks Ahead
By introducing this classification now, the MHRSD is not only aligning with global best practices, but also laying the groundwork for more responsive and targeted labour policies in the years ahead.
This structure allows the government to better map where lower-skilled roles are concentrated across key sectors. That kind of visibility is valuable—it gives policymakers the tools to adjust economic levers, such as levies or hiring incentives, based on actual workforce composition rather than broad assumptions. We’ve already seen sector-based relief in areas like construction and manufacturing; with this new model in place, more tailored interventions are likely
What It Could Mean for Employers and Professionals
For employers operating in higher-skilled sectors, this new lens may eventually translate into greater scrutiny of professional roles. While accreditation is already required in areas like engineering and healthcare, future reforms could introduce salary floors or minimum experience thresholds—particularly for first-time work visa applicants or those seeking renewals. These changes would help maintain competitive wage levels and guard against undercutting local talent.
At the same time, we may see more formal requirements emerge around labour market testing for certain roles, especially in administration and management. This trend is already surfacing organically, with Saudis increasingly stepping into leadership and support positions. Tying visa eligibility to demonstrable labour market need could strengthen Saudization efforts—without enforcing blanket restrictions across the private sector.
Could Age and Education Shape Future Policy?
As the system evolves, there’s also potential for it to favour younger, highly qualified foreign professionals. In the future, we might see advantages extended to applicants under 30 with degrees from top global institutions, competitive salaries, and strong career prospects. The thinking here is simple: younger professionals tend to stay longer, cost less in end-of-service benefits, and offer greater potential for knowledge transfer to local talent over time. This could also help reduce the average age of the workforce—an increasingly important factor in long-term productivity and demographic strategy.
What Employers Should Be Doing Right Now
While no enforcement measures have been tied to the classification yet, this is a good time for companies to review their current expatriate workforce. How many of your foreign hires fall into the ‘High-Skilled’ versus ‘Basic’ category? What’s the average age, education level, or salary range of your expat employees?
Getting a clear picture now means fewer surprises later. If additional documentation or justifications are introduced—particularly for renewals or new hires—being prepared will make a difference. It’s also a chance to align your hiring strategy with what’s likely to come.
Looking Beyond the Labels
On the surface, this may feel like a quiet administrative update—but in reality, it’s a foundational step in modernising Saudi Arabia’s approach to foreign talent. It gives the government the flexibility to tailor policies that support national goals while still enabling businesses to access the skills they need.
For employers, the message is clear: the landscape is shifting. Get ahead of it, understand where your workforce sits within this new framework, and start preparing for what’s next.
