Saudi Arabia Introduces Skill-Based Work Visa System for Expatriates
Landmark Reform Replaces Old Iqama Model
RIYADH — Saudi Arabia has unveiled a major reform of its decades-old work visa system, introducing a skill-based classification for expatriate workers. The new system officially came into effect on July 5, 2025, replacing the previous one-size-fits-all iqama model that applied uniformly to all foreign employees, regardless of profession or expertise.
Under the revised framework, expatriate workers are categorized into three tiers — High-Skill, Skilled, and Basic — based on factors such as education, professional experience, accreditation, salary, and age.
Part of Vision 2030 Labor Market Modernization
The Ministry of Human Resources and Social Development (HRSD) stated that the reform is part of Saudi Arabia’s Vision 2030 initiatives to modernize the labor market, enhance transparency, and attract highly qualified professionals.
The evaluation and classification process is fully automated through the Qiwa digital platform, enabling employers to manage and review their workforce efficiently. Workers who feel they have been misclassified can submit correction requests if they meet the requirements for a higher tier.
Two-Phase Rollout for Existing and New Workers
The reform is being implemented in two phases:
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Phase 1 (July 2025): Applies to existing expatriates already working in Saudi Arabia. Classification is based on current wages and job roles.
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Phase 2 (August 3, 2025): Covers new foreign entrants, who will be categorized before their work permits are issued.
Officials noted that the new system aligns job roles with the Saudi Standard Classification of Occupations (SSCO), creating a more merit-based labor market.
Benefits for Workers and Employers
For employees, the skill-based system offers greater career clarity and ensures qualifications are properly matched to roles.
Employers benefit from streamlined compliance, digital management tools, and improved recruitment aligned with the Kingdom’s economic transformation goals.
The HRSD has mandated the new system for all new and renewed work permit applications, emphasizing that accurate classification is crucial for both workers and businesses.
Bahrain Introduces 6-Month Work Permit for Expat Commercial Workers
Meanwhile, Bahrain’s Labour Market Regulatory Authority (LMRA) announced a 6-month commercial work permit for expatriates already residing in the country. This temporary permit is designed to:
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Allow employers to trial existing workers
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Reduce operational costs
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Promote sustainability in the commercial sector
The LMRA clarified that the new permit is not intended for recruiting workers from abroad, focusing solely on expatriates currently in Bahrain.
“This measure aims to reduce new expatriate recruitment in the commercial sector while offering business owners trial options to leverage the existing workforce efficiently,” the LMRA said.
The initiative is expected to help businesses improve financial efficiency, achieve sustainability, and lower operational expenses while testing new talent before committing to longer-term contracts.