The reform is expected to benefit around 13 million migrant workers, mostly from South and Southeast Asia.
Riyadh: Saudi Arabia has abolished its decades-old Kafala system, a labor sponsorship model that controlled the lives and rights of millions of foreign workers. The decision, announced in June 2025, marks a historic step toward improving migrant welfare and labor rights in the kingdom. The reform is expected to benefit around 13 million migrant workers, mostly from South and Southeast Asia.
The word Kafala, derived from Arabic for "sponsorship," came to represent an entire way of life in the Gulf -- one where employers had near-total control over their employees, deciding whether they could change jobs, leave the country, or even seek legal help. According to the system, every migrant worker was tied to a local sponsor, known as a Kafeel, who held authority over their residency, employment, and legal status.
However, over the decades, the framework became a source of widespread abuse. Employers could seize workers’ passports, delay or deny wages, and restrict their movement. Without their sponsor’s permission, workers could not change jobs, return home, or approach the authorities in case of mistreatment.
Under the new framework, Saudi Arabia will move to a contract-based employment system designed to give workers more independence and control over their lives. Migrant employees will now be able to change jobs without needing approval from their current employer. They will also be free to leave the country without requiring an exit visa or their sponsor’s consent, ending a restriction that trapped many in abusive or exploitative conditions.
With an estimated 13.4 million migrant workers, accounting for nearly 42 per cent of its population, Saudi Arabia has relied on foreign labour for domestic work, construction, agriculture, and other sectors. Many of these workers came from India, Bangladesh, Nepal, and the Philippines.
