Major Changes to Saudi Visa Regulations: What Expats Need to Know
Saudi Arabia has introduced a significant overhaul of its visa policy, focusing on the qualifications, experience, and salaries of expatriates.
Under the new system, expats are now categorized into three distinct groups: high-skilled, skilled, and basic.
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This initiative aligns with Saudi Vision 2030 and major projects like NEOM and Qiddiya. While this system may benefit professionals, it could pose challenges for low-wage workers.
Organizations will now face new documentation requirements and compliance regulations.
What’s New?
The “Skill-Based Visa” system emphasizes individual qualifications rather than job titles. Previously, all workers, regardless of their profession, held the same residency permit known as iqama. This era is now changing.
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A new work permit issuance method is effective as of July 2025, taking into account each individual’s credentials, experience, and salary. The focus is shifting from employment contracts to what expats bring to the table.
Categories of Employees
The new system classifies workers into three categories:
- Highly Skilled: Engineers, doctors, AI experts, etc.
- Skilled: Technical positions and leadership roles.
- Basic: Duty-based roles, like drivers and cleaners.
The Ministry of Human Resources is managing this system through its digital platform, Qiwa, which evaluates factors such as age, salary, and work experience.
Reasons for Change
These changes are part of Saudi Arabia’s broader Vision 2030 strategy, which aims to diversify the economy beyond oil by attracting top-tier global talent in various fields, including technology and management. Key projects driving this demand include:
- NEOM: A $500 billion smart city.
- Qiddiya: A major cultural and entertainment hub.
- The Red Sea Project: A premier ecotourism destination.
- Diriyah Gate: A restoration project for historical identity.
Impact on Current Expats
For those already in Saudi Arabia, the new regulations came into effect in mid-June 2025, with employers required to update records by August 3, 2025. Benefits for professionals under this new system may include:
- Faster residency renewals.
- More career opportunities across diverse fields.
- Easier access to long-term residency and family sponsorships.
Conversely, those classified in the basic category may face:
- Increased documentation requirements.
- Delays in visa processing.
- Complications during job changes or permit renewals.
Historical Context
Understanding past practices helps clarify these changes. The long-standing kafala system placed employers in control of their employees’ lives, which faced criticism over the years, leading to reforms like the Nitaqat program in 2011. The current skill-based model represents a bold step in adapting to an evolving economy.
Effects on Business Owners
This reform necessitates significant changes for employers in Saudi Arabia. HR departments must ensure job positions align with educational qualifications, and salaries reflect the new categorization.
Mistakes in documentation can lead to penalties or visa application denials, a challenge especially for small and medium businesses.
The Future of Kafala
While the skill-based system marks progress, many expat workers, particularly in lower-skilled jobs, still rely on employer approval for various essential needs like travel and family sponsorship.
Remittance Implications
Expatriates in Saudi Arabia send home over 12.78 billion SAR ($3.4 billion) monthly. The reduction in low-income workers might alter remittance patterns, impacting countries like the Philippines, India, and Bangladesh.
This shift affects a broad spectrum of expatriates, from tech professionals to healthcare workers. While some may enjoy more freedoms and benefits, others may confront new challenges in their long-term residency plans.
FAQs
Can employees contest their skill categorization?
Not directly; however, employers can submit revised paperwork through Qiwa for review.
Is it easier to sponsor family members now?
Yes, workers in the high-skilled category will find family sponsorship and permanent residency more accessible.
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