Saudi Arabia has officially ended its decades-old Kafala (sponsorship) system as part of Crown Prince Mohammed bin Salman’s Vision 2030 reforms.
Under the new regulations, foreign workers can now switch jobs without their employer’s approval and leave the country without needing an exit visa, a major step toward labor freedom in the Kingdom.
What Was the Kafala System?
Introduced in the 1950s across the Gulf, the Kafala system linked a migrant worker’s residency and employment directly to their employer, or kafeel, giving the latter full control over their movement and job status.
While initially meant to manage the growing foreign workforce, the system became notorious for exploitation, with frequent reports of passport confiscation, unpaid wages, restricted mobility, and lack of legal protection.
Human rights organizations repeatedly condemned it as a form of modern-day slavery and urged Gulf countries to abolish it.
The reformed system introduces a contract-based model, granting migrant workers greater independence and legal security.
Workers can now change employers once their contract ends or after notifying their current company, and they are free to leave the country without a sponsor’s consent. Strengthened labor courts will also allow workers to report abuse or violations more effectively.
This reform is a major relief for millions of laborers from Pakistan, India, Bangladesh, Nepal, and the Philippines who make up a large part of Saudi Arabia’s workforce, especially in construction, domestic work, and hospitality.
It marks a significant shift toward fairer labor rights and improved working conditions in the Kingdom.