Saudi Arabia Ends the Kafala Sponsorship System — What Changes for Workers?
Saudi Arabia has officially announced the end of the Kafala system, a move that marks a historic shift in the treatment and rights of millions of migrant workers in the Kingdom. For decades, this system governed how foreign laborers entered, lived, and worked in the Gulf—but it also drew intense global criticism for enabling exploitation and abuse.
So, what exactly was the Kafala system, and why has its abolition become such a significant milestone?
Understanding the Kafala System
The Kafala (sponsorship) system was a legal framework that regulated the relationship between foreign workers and their employers (known as Kafeels) in Saudi Arabia and several other Gulf countries.
Under this arrangement, a worker’s visa, residency, and even their passport were tied directly to their employer. This meant that employees could not freely change jobs, travel abroad, or even leave the country without their sponsor’s explicit permission. Over time, this led to widespread reports of abuse and exploitation, with critics around the world calling it a modern form of slavery.
What Does ‘Kafeel’ Mean?
To understand the system, one must first grasp the meaning of Kafeel. In Arabic, Kafeel literally translates to “guarantor” or “sponsor.” The word originates from the root Kaf–Fa–Lam, which conveys three essential meanings:
To guarantee or take responsibility
To handle or manage something
To be entrusted with care or protection
Initially, this concept was meant to represent trust and responsibility. However, in the context of foreign labor, the term evolved into a power structure where sponsors had absolute control over the workers under their care.
How the Kafala System Took Shape
The Kafala Sponsorship System was adopted across the Gulf Cooperation Council (GCC) nations—Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the UAE—in the mid-20th century. It also extended to countries like Jordan and Lebanon.
In the 1950s, the discovery of oil led to rapid development across the Gulf. With small local populations, the demand for labor far exceeded supply. To meet this need, governments brought in foreign workers under a system where local citizens (the Kafeels) were made responsible for the workers’ welfare and legal compliance.
Initially intended to simplify administrative processes, the Kafala system soon evolved into a structure that severely limited workers’ rights and left them vulnerable to exploitation.
Exploitation and Human Rights Concerns
Over time, the system became synonymous with exploitation. Workers’ legal status was entirely dependent on their Kafeel, who could:
Confiscate their passports
Withhold wages
Deny permission to change employers or return home
In many cases, workers faced inhumane working conditions, long hours, and physical or psychological abuse—with little to no legal recourse. While the system was originally meant to protect both sides, it gradually turned into a tool for control, trapping millions of laborers in exploitative conditions.
Who Were the Workers Affected?
Initially, most workers came from neighboring Arab nations like Egypt. But over time, the Gulf states increasingly relied on South Asian laborers from India, Pakistan, Bangladesh, and Nepal due to lower costs.
According to The Times of India, 13.4 million expatriates currently live in Saudi Arabia, making up nearly 42% of its total population. Reports by India Today, citing the International Labour Organization (ILO) and Human Rights Watch (HRW), indicate that around 24 million migrant workers across the Gulf remain under Kafala-like systems—7.5 million of them are Indians.
As of December 2022, India’s Ministry of External Affairs reported that 2.46 million Indians work in Saudi Arabia alone, with another 924,000 in Kuwait.
Why Saudi Arabia Decided to Abolish Kafala
The Kafala system has long been condemned by human rights organizations and the ILO as a relic of modern slavery. Persistent international criticism, coupled with the country’s ambition to modernize under Crown Prince Mohammed bin Salman’s Vision 2030, has driven Saudi Arabia to take bold reformative steps.
In June 2025, the Kingdom officially abolished the Kafala system, replacing it with a more transparent, contract-based employment model. This decision is part of a broader initiative to restructure the Saudi economy, attract global investment, and project an image of a progressive, worker-friendly nation.
The New Contract-Based System: A Step Toward Reform
Under the new labor system, workers are granted far greater autonomy and protection. Key reforms include:
Freedom to change jobs without needing the employer’s consent
Right to leave the country without requiring an exit permit from their sponsor
Simplified legal procedures for filing labor disputes and complaints
Digital systems for employment contracts, ensuring transparency and accountability
These changes are expected to reduce exploitation, improve workplace conditions, and make Saudi Arabia a more attractive destination for skilled global talent and foreign investors.
A Historic Shift in the Gulf’s Labor Landscape
The abolition of the Kafala system represents more than just a policy change—it signifies a transformative step toward human rights and economic modernization in the Middle East.
While challenges remain in implementing the new system effectively, this move by Saudi Arabia could inspire similar reforms across the Gulf, potentially reshaping the lives of millions of migrant workers who have long sought dignity and fair treatment.
