Saudi Arabia's New Work Permit Rules: What Employers and Expats Need to Know in 2025?

Saudi Arabia is entering a new era of workforce regulation with its skill-based classification system for work permits, coming into effect in mid-2025. These reforms are a core part of the Kingdom’s Vision 2030 agenda, designed to attract global talent, strengthen labor market transparency, and align workforce quality with international standards.

For companies considering business setup in Saudi Arabia as a gateway into the wider Gulf region, these updates are vital for a compliant business incorporation in the KSA region. 

The New Skill-Based Classification System 

From July 1, 2025 (new expats) and June 18, 2025 (existing workers), the Ministry of Human Resources and Social Development (HRSD) will categorize expatriates into three tiers: 

• High-Skill Workers 

• Skilled Workers 

• Basic Workers 

Unlike the previous one-size-fits-all model, the classification will now consider factors such as educational qualifications, professional accreditation, work experience, wage level, and age. This structured approach is intended to boost labor efficiency and ensure the Kingdom attracts and retains top global talent. 

Why This Matters for Businesses and Professionals? 

For foreign investors and businesses planning company formation in Saudi Arabia, the new rules create operational shifts: 

• Employers must align hiring practices, HR systems, and job roles with the new occupational categories. Salary structures and workforce planning will need revisiting, especially in labor-heavy sectors such as logistics, construction, and hospitality. 

• Expatriates will need to ensure their professional qualifications, certifications, and job titles align with their registered Iqama profession codes to remain compliant and avoid penalties. 

This shift is regulatory and strategic. By rewarding skill and merit, Saudi Arabia is making itself more competitive and attractive to qualified global professionals. 

How to Check Your Iqama Profession? 

Expatriates must ensure their Iqama records are updated correctly. Saudi Arabia offers multiple platforms for this verification: 

• Physical Iqama Card – Check the “Mehna” field for your registered profession. 

• MOI Portal – Log in to view your profession under your profile. 

• Absher Platform – Navigate to “Dashboard > More Details” for real-time data. 

• Qiwa Platform – A key employer-facing system that reflects job data linked to ministry records. 

Operational Implications for Employers 

For employers, especially those new to the market, compliance is not optional. The reform requires: 

• Reviewing existing staff roles and Iqama classifications 

• Ensuring qualifications align with professional categories 

• Adjusting payroll budgets to meet thresholds for high-skill and skilled categories 

• Integrating compliance into long-term staffing strategies 

Companies entering Saudi Arabia must now embed compliance and workforce strategy into the earliest stages of their incorporation journey. 

What’s Next? 

Saudi authorities are expected to refine the system further, offering clarifications as the policy matures. For businesses, the message is clear: workforce compliance is now central to sustainable operations in Saudi Arabia. 

Staying informed on labor reforms is critical for Saudi business setup. To dive deeper into Saudi Arabia’s new work permit rules and how they impact your growth strategy, read the full blog on our website