Saudi Arabia Abolishes Kafala System, Granting New Rights to Migrant Workers
In a historic labor reform, Saudi Arabia has officially abolished its 50-year-old Kafala system, a labor sponsorship framework that tied migrant workers’ residency and employment to individual employers. The reform, announced in June 2025, is expected to benefit approximately 13 million foreign workers, primarily from South and Southeast Asia.
Under the Kafala system, workers’ legal status was linked to their employer, granting employers significant control over their ability to change jobs, leave the country, or access legal recourse. Critics have long condemned the system for enabling exploitation and limiting workers’ freedoms.
The new labor reforms replace the Kafala system with a contractual employment model. Workers can now switch jobs without prior employer consent after completing their contract or providing proper notice. They are also free to travel abroad and return without requiring permission from their sponsor. Additionally, the government has introduced digital systems to ensure transparency and improve dispute resolution mechanisms.
Human rights organizations have welcomed the reform as a step forward, though they emphasize that effective enforcement will be key to preventing continued abuses. Employers, on the other hand, have expressed cautious optimism, noting that the changes could improve productivity and international confidence in Saudi labor markets.
The abolition of the Kafala system aligns with Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy and enhance its global image. While challenges remain in implementation, the reform is widely seen as a historic milestone toward improving labor rights and working conditions across the Kingdom.
