Saudi Arabia Officially Abolishes the Kafala Sponsorship System: A Landmark Step for Migrant Workers’ Rights

Saudi Arabia has officially abolished the long-standing Kafala (sponsorship) system — a decades-old labour framework that shaped the lives of millions of migrant workers across the Gulf. Announced in June 2025, this landmark decision marks a historic step towards improving labour rights and migrant welfare in the Kingdom. The reform is expected to benefit nearly 13 million foreign workers, the majority of whom come from South and Southeast Asia.

What Was the Kafala System?

Derived from the Arabic word meaning “sponsorship,” the Kafala system granted employers almost complete control over the employment and mobility of migrant workers. Under this arrangement, workers could not change jobs, leave the country, or even seek legal assistance without their employer’s consent.

Introduced in the 1950s, the system was designed to regulate the influx of low-cost foreign labour that powered the oil-rich economies of the Gulf. However, over time, it became a source of severe exploitation and abuse. Employers often confiscated workers’ passports, delayed or withheld wages, and restricted movement. Without the sponsor’s permission, workers were unable to change employment, return home, or report mistreatment to authorities.

Human rights groups and international organisations, including the International Labour Organization (ILO), have long described the Kafala system as a form of modern-day slavery, arguing that it stripped workers of basic freedoms and made them highly vulnerable to abuse.

Mounting International Pressure

The Kafala system has faced mounting criticism from international labour bodies, foreign governments, and human rights organisations. Reports from the ILO and various NGOs accused Gulf states of fostering conditions conducive to forced labour and human trafficking.

With migrant workers making up roughly 42% of Saudi Arabia’s population, the Kingdom has long relied on foreign labour in sectors such as domestic work, construction, and agriculture. Many of these workers hail from India, Bangladesh, Nepal, and the Philippines. Among them, domestic workers—particularly women—have been the most vulnerable, often facing isolation, excessive workloads, and wage exploitation.

Reform and Vision 2030

After years of international scrutiny and persistent advocacy for reform, Saudi Arabia’s decision to dismantle the Kafala system aligns with the Kingdom’s ambitious Vision 2030 agenda spearheaded by Crown Prince Mohammed bin Salman. The initiative seeks to diversify the Saudi economy, reduce dependency on oil, and project a modern, progressive image on the global stage.

The abolition of the Kafala system follows similar reforms in neighbouring Gulf countries such as Qatar, which overhauled its labour laws ahead of hosting the 2022 FIFA World Cup.

What the New System Means for Workers

Under the new contract-based labour model, migrant workers will enjoy greater freedom and autonomy. They will now be able to change jobs without employer consent and leave the country without requiring an exit visa or sponsor approval — a dramatic departure from the previous system.

Access to labour courts and complaint mechanisms has also been expanded, empowering workers to report violations and seek justice more effectively. These measures not only bring Saudi labour practices closer to international standards but also aim to make the Kingdom a more attractive destination for skilled professionals and global investors.

The end of the Kafala system represents a turning point in Saudi Arabia’s labour landscape — one that could reshape the rights, dignity, and working conditions of millions who have long contributed to the Kingdom’s growth and prosperity.