Professional Verification Scheme Launched to Regulate Labor Market

The situation

The Ministry of Human Resources and Social Development (MHRSD), in cooperation with the Ministry of Foreign Affairs (MOFA) and the Technical and Vocational Training Corporation, launched the Professional Verification initiative to evaluate the skills of foreign workers in Saudi Arabia’s private sector and limit the participation of unskilled workers in the labor market.

A closer look

• Purpose. The program will allow the government to verify whether foreign nationals have the required skills to conduct work in Saudi Arabia by testing their practical and theoretical knowledge through mandatory exams.
• Details of examination. Foreign nationals applying for an initial work visa from outside Saudi Arabia will be required to pass an examination administered by Saudi authorities in the sending country as well as the Saudi MOFA. Employers of those already working in Saudi Arabia must register online to sign up their foreign employees for the exam, who will be examined by local agencies. Exams will differ based on the applicant’s professional field. It is unclear whether individuals in Saudi Arabia who fail their examination process will be allowed to renew their work authorization.
• Affected professions. It is expected that more than 1,000 specialized professions (as classified by the Saudi Standard Classification of Occupations) across 23 sectors will be affected by the verification requirement; the MHRSD has not yet published the relevant list of impacted job titles.
• Implementation. The Professional Verification scheme will be gradually implemented for all employers in Saudi Arabia, based on their size, beginning in July 2021. Until the mandatory requirements are implemented, businesses are encouraged to voluntarily participate in the program by registering through this electronic portal.

 

Impact

• Limiting foreign applicants. The Professional Verification Scheme will limit the number of eligible applicants for positions in Saudi Arabia as some foreign nationals may not have the training or experience required to pass the examination.
• Increased costs. It is also expected that the overall timeframe and cost of employing foreign nationals will increase due to the additional step in the recruitment process.

 

Background

This program is meant to continue government oversight of foreign workers, and is in line with other recent policies established to increase Saudization.

Looking ahead

It is likely that Saudi Arabia will continue to implement policies similar to the Professional Verification Scheme, which allow highly-skilled workers to enter the country, but limit the number of lesser-skilled professionals. For example, as part of its Vision 2030, which seeks to diversify Saudi Arabia’s economy away from its traditional reliance on the oil and gas industry, the country intends to build cities such as NEOM, which will serve as an innovation incubator and attract talent from across globe. However, as unemployment rates remain high among the local population, the limits on unskilled workers will allow more Saudi Arabians to participate in the labor force.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].