- Landmark Saudi labour reform ends decades-old sponsorship system
- Vision 2030 initiative aims to improve migrant rights and global image
Hyderabad, Oct 22 (Maxim News): In a major policy shift, Saudi Arabia has formally abolished the Kafala (sponsorship) system — a decades-long labour framework that tied millions of migrant workers to their employers. The move, effective since March 2021 and completed in June 2025, marks a historic milestone under Crown Prince Mohammed bin Salman’s Vision 2030 plan. The reform is expected to benefit nearly 13 million migrant workers and transform the labour landscape of the Gulf region.
The Kafala system, meaning “sponsorship” in Arabic, gave employers control over a worker’s immigration status, legal stay, and ability to change jobs or leave the country. Employers, often referred to as “kafeels,” could confiscate passports, restrict movements, and withhold salaries, leaving workers with little legal protection. Human rights groups such as Amnesty International and Human Rights Watch long criticized the system, calling it exploitative and incompatible with global human-rights standards.
Saudi Arabia’s announcement follows earlier regional reforms. Bahrain abolished the system in 2009, Israel ended its “binding system” in 2006, and Saudi Arabia’s own reform effort began in 2021 before full abolition in 2025. The decision is seen as both a domestic policy reform and a strategic global move as the Kingdom positions itself for projects under Vision 2030 and prepares to host the 2034 FIFA World Cup.
Under the new framework, workers in Saudi Arabia can now change jobs without employer approval, leave or re-enter the country independently, and access labour courts in cases of abuse. Digital labour contracts, processed through the Absher and Qiwa platforms, enhance transparency and legal accountability. The changes are also aimed at attracting foreign investment, strengthening labour protections, and aligning with international employment standards.
Saudi officials say this reform is part of a broader push to modernize the Kingdom’s economy and ensure fair working conditions. However, activists and labour groups emphasize that strict implementation will be crucial to ensuring genuine protection and freedom for migrant workers. The abolition of the Kafala system, they say, offers hope to millions who have long worked under restrictive and often abusive employment conditions.
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