Saudi Arabia has officially abolished its decades-old Kafala or sponsorship system, a seismic shift for the millions of migrant workers who form the backbone of its economy. The reform, announced in mid-2025 and implemented this month, represents one of the kingdom’s boldest moves toward labour modernisation.
From Control to Contract
For over seventy years, the Kafala system tied foreign workers’ legal status to local sponsors (kafeel), giving employers near-total control over workers’ movement and employment. Workers could not switch jobs, travel abroad, or even seek justice without their sponsor’s consent. Critics said it created conditions that amounted to “modern-day slavery.”
Under the new contract-based system, workers will now have the right to:
- Change jobs without their employer’s permission.
- Leave the country freely, without an exit visa.
- File grievances directly through digital platforms and labour courts.
These rights, once unthinkable in the Gulf’s labour hierarchy, mark the beginning of a long-awaited rebalancing of power between employers and workers.
The Human Side of Reform
Saudi Arabia’s labour force includes over 13 million migrants- many from India, Bangladesh, Nepal, the Philippines, Kenya, and Ethiopia. Their contribution has built the nation’s infrastructure, oil sector, and service economy. Yet many have endured long working hours, withheld salaries, and isolation under the old system.
Ending Kafala could finally open a path to dignity and legal protection. But observers caution that real change depends on enforcement, not just announcements. “The law is only as strong as its application,” says one human-rights worker in Riyadh.
Vision 2030: A Strategic Motive
The abolition fits squarely within Crown Prince Mohammed bin Salman’s Vision 2030, an ambitious plan to diversify the Saudi economy beyond oil and transform its global reputation. Labour reform, analysts note, is essential to attract foreign investment and skilled professionals to the Gulf’s largest economy.
By aligning with global labour standards, Riyadh hopes to present itself as a competitive, fair, and forward-looking hub for international talent.
Beyond Borders: The Gulf’s Slow Evolution
Saudi Arabia follows Qatar and Bahrain in dismantling the controversial sponsorship framework. But its decision holds the greatest symbolic weight in the region, setting a new precedent for Gulf states that still rely heavily on migrant labour.
If implemented effectively, the reform could redefine the rights of nearly 35 million workers across the GCC, signalling the beginning of the end of one of the world’s most criticised labour systems.
A New Chapter, A Cautious Hope
For now, optimism among workers is tempered by realism. Many still live in dormitories far from home, sending wages to families they may not see for years. But this reform, after decades of silence and struggle, gives them something new: hope backed by law.
The end of Kafala is more than a bureaucratic change. It is a moral reckoning, and a quiet revolution in the heart of the Arabian Peninsula.
