In a historic move, Saudi Arabia has officially abolished the decades-old Kafala (sponsorship) system, marking a major milestone in Crown Prince Mohammed bin Salman’s ambitious Vision 2030 reform plan. This decision, long awaited by human rights advocates and millions of foreign workers, represents a new chapter for labor rights in the Kingdom.
What Was the Kafala System?
The Kafala system was introduced back in the 1950s across Gulf nations. This was initially designed to regulate the growing number of migrant workers in the region. Under this system, a legal residency of the worker and employment were tied directly to their employer, called the kafeel or sponsor.
However, over time, this structure became synonymous with exploitation and abuse. Employers held enormous power — often confiscating workers’ passports, withholding their salaries, or denying them the right to change jobs or leave the country. Many foreign workers found themselves trapped, unable to return home without their sponsor’s consent.
Human rights organizations repeatedly described Kafala as a form of modern-day slavery, urging Gulf states to abolish it. For countless workers, especially in low-wage sectors, this system meant years of suffering, limited freedom, and no voice to seek justice.
Reforms Under Vision 2030
As part of Vision 2030, Saudi Arabia’s broader plan to modernize its economy and society, the government has introduced a contract-based employment model to replace Kafala.
Under the new regulations:
• Workers can change employers freely after completing their contracts or by giving proper notice.
• They can leave the country without needing an exit visa or employer’s approval.
• Labor courts have been empowered to ensure workers’ rights are upheld and that they can report abuses more easily.
These reforms aim to build a fairer and more transparent labor market, aligning the Kingdom’s labor policies with international standards and improving its global image as a modern, worker-friendly economy.
A Lifeline for South Asian Migrant Workers
This change holds deep meaning for the millions of migrant workers from various countries, such as Pakistan, India, Bangladesh, Nepal, and the Philippines, who are the major part of Saudi Arabia’s workforce — especially in construction, domestic service, and hospitality.
The end of Kafala means greater dignity, independence, and legal protection. Workers are now capable of finding better opportunities without fear of retaliation or confinement. It also guarantees to improve their living conditions and family well-being back home, as remittances remain a vital economic lifeline for South Asian countries.
A right initiative to promote Fairness and Hope
While implementation will take time and require strong oversight, the abolition of the Kafala system is considered to be the major step toward justice and equality. It is the clear manifestation that Saudi Arabia is ready to embrace reform, not only for its economy but also for the millions of workers who have helped build it.
For the first time in decades, hope takes the place of fear — and freedom replaces dependency.