The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia is working on a draft scheme to divide work permits into three categories based on skill levels. The ministry is coordinating with the Ministry of Investment of Saudi Arabia (MISA) to address their reservations and observations regarding the scheme. The MHRSD presented the draft scheme in June 2024 through the unified electronic platform for public feedback. The scheme divides work permits and visas into highly skilled, skilled, and basic categories, and feedback from the public and entities is being taken into consideration before finalizing the scheme.
MISA has expressed reservations about the potential impact of the scheme on the investment environment. They have emphasized the need to consider the interests of local and foreign investors, and have requested detailed studies and benchmarking analysis to assess the proposal’s impact on various systems. MISA also highlighted the importance of studying the financial impact and business practices of the proposal, as well as its effects on small and medium enterprises. They stressed the need to comply with international obligations and review directives issued by the highest authorities.
In response to MISA’s reservations, the MHRSD stated that the proposed scheme is based on a comprehensive study of its financial, economic, and legislative impacts. A benchmark comparison with global best practices showed no significant negative impact on the investment environment. The ministry believes that the scheme will help commercial establishments attract people with the skills they need, thus positively impacting the business environment and investment climate. The MHRSD will provide MISA with a summary of the study conducted on this matter.
The MHRSD presented the proposal to divide work visas according to skill levels to the Labor Market Policies Committee in 2021, and the committee praised the proposal. Small companies with less than 20 employees were exempted from some of the policies of the new recruitment system. The ministry is working towards finalizing the scheme after considering all feedback and observations received from the public and entities. The goal of the scheme is to improve the matching of skills with job requirements and to enhance the overall business environment in Saudi Arabia.
