Saudi Arabia Abolishes Kafala System After 50 Years; Grants Grants Freedom and New Rights to Millions of Migrant Workers

In a historic and long-awaited move, Saudi Arabia has officially abolished the Kafala (sponsorship) system, a labor framework that has governed foreign employment in the Kingdom for more than five decades. The reform marks a major turning point in the Gulf’s labor history and is expected to transform the lives of millions of migrant workers who have long been bound by restrictive employment rules.

A 50-Year Grip Loosened

For decades, the Kafala system tied foreign workers to their employers, granting sponsors almost total control over their movement, employment, and even legal status. Under this system, migrant workers could not change jobs, leave the country, or even renew their residency permits without their employer’s consent. Critics — including international human rights organizations — had often described it as a form of modern-day slavery.

The system, which originated in the 1950s, was meant to regulate foreign labor inflows, but it soon became notorious for enabling worker exploitation, abuse, and lack of freedom. Reports of passport confiscations, unpaid wages, and harsh working conditions were widespread, painting a grim picture of life for many expatriate workers across the Gulf region.

The Reform: What’s Changing

The Saudi Ministry of Human Resources and Social Development announced that, effective immediately, migrant workers will be free to:

• Change employers without their sponsor’s approval after completing their contract or after a reasonable notice period.

• Exit and re-enter the Kingdom without requiring an employer-issued exit visa.

• Obtain final exit visas to leave the country on their own terms.

These sweeping reforms are part of Saudi Arabia’s broader “Vision 2030” initiative — a national plan spearheaded by Crown Prince Mohammed bin Salman to modernize the Kingdom’s economy and society, diversify away from oil dependency, and improve the country’s global image.

A Step Toward Labor Dignity

According to estimates, Saudi Arabia hosts more than 10 million foreign workers, making up nearly a third of its population. Many of these workers come from countries such as India, Pakistan, Bangladesh, the Philippines, Egypt, and Sudan — nations that have long sought better protections for their citizens in the Gulf.

Human rights advocates and labor organizations have hailed the decision as a monumental leap toward labor dignity and equal opportunity. “This reform has the potential to end decades of abuse and exploitation,” said an Amnesty International spokesperson, while noting that the true test will be in its implementation and enforcement.

Regional Ripple Effect

Saudi Arabia’s move could set off a ripple effect across the Gulf Cooperation Council (GCC), where similar sponsorship systems remain in place in varying forms in countries like Qatar, the UAE, and Kuwait.

While Qatar has already taken partial steps to reform its Kafala system ahead of the 2022 World Cup, Saudi Arabia’s complete abolishment signals a stronger regional shift toward protecting migrant rights.

Economic and Social Implications

Beyond human rights, this reform could reshape Saudi Arabia’s labor market. By giving workers more autonomy, the Kingdom hopes to boost productivity, attract skilled labor, and enhance its global competitiveness. Analysts predict that increased labor mobility could also improve job satisfaction and reduce disputes between employers and workers.

However, some business owners express concerns about potential labor shortages or higher wage demands, especially in industries heavily reliant on cheap migrant labor such as construction, domestic work, and hospitality.

A New Chapter for Millions

For millions of foreign workers who have lived under the Kafala system for decades, this reform represents more than a policy change — it’s a restoration of human dignity. The right to choose an employer, to move freely, and to leave the country at will are basic freedoms that many have long been denied.

Saudi Arabia’s decision sends a clear message to the world: the era of absolute employer control is over, and a new dawn of labor rights has begun in the Gulf.