Saudi Arabia ends 50-year-old Kafala system, grants new rights to 13 million migrant workers

Saudi Arabia: In a historic labour reform, Saudi Arabia has officially abolished the decades-old Kafala (sponsorship) system after nearly 50 years and introduced new legal rights for its vast migrant workforce. The new framework, implemented in June 2025, aims to protect around 13 million foreign workers, primarily from South and Southeast Asia.

The Kafala system, derived from the Arabic word meaning “sponsorship,” was introduced in the 1950s across Gulf countries, including Saudi Arabia. Under it, a migrant worker’s legal status was tied to their employer or kafeel, who controlled critical aspects of the worker’s life — including job changes, travel, and access to legal aid.

Human rights organizations have long criticized the system for enabling exploitation, forced labour, and abuse. Employers often confiscated workers’ passports, restricted their movement, and denied them the right to change jobs or leave the country without permission.

Under the newly introduced contractual employment model, Saudi Arabia has shifted away from this restrictive structure. According to the Saudi Press Agency (SPA), migrant workers can now change employers without prior approval from their current sponsor and exit the country without needing an exit visa — a key reform that dismantles a major pillar of the old Kafala regime.

Officials have hailed the reform as a landmark step under Vision 2030, Crown Prince Mohammed bin Salman’s ambitious plan to diversify the kingdom’s economy and improve labour rights. Authorities have said the changes are designed to “enhance worker mobility, protect rights, and increase transparency in labour relations.”

Human rights groups, while acknowledging the move as positive, urged Saudi authorities to ensure effective implementation and monitoring. “Ending Kafala on paper is not enough — enforcement will be key,” said a statement from the international labour rights group Migrant Forum in Asia.

Systemic change for millions:

Saudi Arabia currently hosts around 13.4 million migrant workers — approximately 42% of its total population. A large share of this workforce comes from Bangladesh, India, Pakistan, Nepal, and the Philippines. In 2023 alone, over 498,000 Bangladeshi nationals and 426,951 workers from neighboring countries found employment in Saudi Arabia.

Among them, more than four million are domestic workers, many of whom previously faced some of the harshest working conditions under the Kafala system. The reforms now grant these workers more autonomy, mobility, and legal safeguards.

The new labour framework also allows workers to obtain legal representation in disputes, ensures timely payment of wages through a monitored electronic wage system, and provides protection from unfair termination and deportation.

Global reaction and implications:

International observers have described the reform as one of the most significant in the Gulf region’s labour history. Countries sending large numbers of workers to Saudi Arabia, including India and Bangladesh, have welcomed the decision, noting that it could reduce exploitation and improve the safety and dignity of migrant workers.

Saudi authorities emphasized that the move aligns with the broader goals of Vision 2030, which seeks to attract global investment, modernize the economy, and reduce the country’s dependence on oil. Ensuring fair and humane working conditions, they said, is critical to achieving that vision.

Despite optimism, watchdogs caution that old patterns of abuse could persist without strict oversight. “The challenge now is implementation — ensuring that employers and recruitment agencies comply with the new laws,” said a researcher from Human Rights Watch.

A long-overdue change:

For decades, the Kafala system symbolized the imbalance of power between Gulf employers and foreign workers. Its official abolition in Saudi Arabia marks a turning point that could influence labour reforms across the region.

By replacing Kafala with a transparent contractual model, the kingdom has taken a decisive step toward ensuring dignity, mobility, and legal equality for millions who help sustain its economy.

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