Saudi Arabia End Kafala System The End of a 50-Year-Old System — Saudi Arabia Abolishes Kafala
Saudi Arabia has officially abolished the Kafala (sponsorship) system, marking a historic milestone in the nation’s labor history. The announcement, made in June 2025 and confirmed through the ( Government News Agency SPA) and the Ministry of Human Resources and Social Development ( HRSD News ), effectively ends a system that governed foreign labor for over five decades.
The Kafala system, introduced in the 1970s, linked a migrant worker’s residency and employment to a single employer (kafeel), often restricting their right to change jobs or leave the country. This system has long been criticized by international labor organizations for enabling exploitation and forced labor-like conditions.
Under the new labor mobility law, migrant workers in Saudi Arabia can now:
Change employers without the kafeel’s permission.
Exit and re-enter the Kingdom without employer approval.
Access better legal protections and dispute resolution channels.
The reform is part of Vision 2030, Crown Prince Mohammed bin Salman’s modernization and economic diversification strategy aimed at improving the work environment and foreign investment climate.
The Ministry of Labour and HRSD confirmed that these changes are fully implemented from 2025 and affect nearly 13 million foreign workers, primarily from South and Southeast Asia.
According to SPA, the new contract-based employment model ensures transparency and fairness between employers and employees. The reform aligns with international labor standards and seeks to attract global talent while improving Saudi Arabia’s human rights image. International NGO HRW Report
How to Choose the Right Part-Time Job in Riyadh, Saudi Arabia – A complete guide for selecting suitable part-time work in Riyadh based on skills and preferences.
Workers’ Rights Strengthened Under Vision 2030 Reforms
The abolition of the Kafala system has transformed Saudi Arabia’s labor market into a modern, flexible, and transparent structure. The new rules ensure that every worker enjoys freedom of movement, fair contracts, and protection against exploitation. International Media Al Jazeera
Previously, the system often led to cases where workers were unable to leave abusive employers, their passports were confiscated, and wages delayed or withheld. Human rights organizations such as Human Rights Watch (HRW) and the International Labour Organization (ILO) have repeatedly urged the Kingdom to eliminate these practices.
The HRSD clarified that the new system introduces a digital platform allowing workers to transfer sponsorships, file complaints, and access official employment contracts online, ensuring accountability and reducing disputes.
This move is not only about social justice—it’s also strategic. By promoting fair labor practices, Saudi Arabia aims to attract skilled professionals, boost productivity, and improve its global ranking in business and human rights indexes.
According to Impact Policies, the reform benefits both employers and employees by fostering trust and reducing dependency. The system now operates under a “Mutual Employment Contract Model”, which defines rights, obligations, and termination rules under Saudi Labor Law, instead of employer dominance.
100 Best Part-Time Jobs in Jeddah for Females – Full Guide – Explore the top part-time job opportunities for women in Jeddah with detailed tips and insights
Reactions and Global Praise for Saudi Arabia’s Landmark Labor Reform
International response to the Kafala abolition has been overwhelmingly positive. Global labor rights groups, including Human Rights Watch, ILO, and various South Asian embassies, have welcomed the move as a “historic step toward worker empowerment.”
The Philippines Department of Foreign Affairs (DFA) and India’s Ministry of External Affairs both acknowledged the reform as a major advancement for the safety and dignity of their expatriate workers. Legal Advisory Elaqat Law
The Times of India reported that nearly 2.5 million Indian nationals in Saudi Arabia will directly benefit from the policy. Similarly, Bangladeshi, Pakistani, and Filipino communities have celebrated the change, expressing hope that it will end years of dependency on sponsors.
Human rights experts say that enforcement is the next challenge. While the law is in effect, practical success depends on strict implementation and public awareness among workers and employers.
Saudi authorities have assured that special monitoring committees have been formed under the HRSD to oversee compliance, investigate complaints, and impose penalties on violators.
This initiative is seen as part of Crown Prince Mohammed bin Salman’s Vision 2030, which aims to diversify the economy, modernize society, and strengthen governance through international collaboration.
Fouzia Zahour Biography – Youngest Female Truck Driver – Biography and inspiring journey of Fouzia Zahour, the youngest female truck driver
The Future of Labor in Saudi Arabia — Beyond the Kafala Era
With the Kafala system abolished, Saudi Arabia is now entering a new labor era characterized by freedom, equality, and growth.
Workers are no longer bound by restrictive sponsorship laws and can pursue better opportunities within the Kingdom. This change not only benefits workers but also enhances economic efficiency, as companies can now hire more freely based on skills and performance rather than sponsorship ties.
The reform has already inspired discussions across the Gulf Cooperation Council (GCC) countries, with neighboring nations exploring similar labor freedom measures.
Legal experts at Elaqat Law explain that the new employment model focuses on mutual consent, written contracts, and legal transparency—a step that positions Saudi Arabia as a leader in ethical labor reform in the Middle East.
Still, experts urge ongoing worker education campaigns, digital registration drives, and embassy-level awareness programs to ensure that the new rights reach every worker, including domestic laborers and construction staff. International Media Times of India
Saudi Arabia’s move to end the Kafala system is not just a legal reform—it’s a symbol of progress under Vision 2030. It redefines the relationship between employers and employees, creating a fairer, safer, and more dynamic workforce that aligns with the Kingdom’s global ambitions.
Quick Summary: Saudi Arabia Abolishes Kafala System (2025)
| Topic | Details |
|---|---|
| Decision Taken | Saudi Arabia officially ended the 50-year-old Kafala (sponsorship) system in June 2025. |
| Announcing Authority | Announced through the Ministry of Human Resources and Social Development (HRSD) and Saudi Press Agency (SPA). |
| What the System Was | The Kafala system tied migrant workers’ residency and employment to a single employer (kafeel). Workers could not change jobs or leave the country without employer approval. |
| New System Introduced | Contract-Based Employment Model — workers can now change jobs freely and exit/re-enter the country without employer permission. |
| Beneficiaries | About 13 million migrant workers, mainly from India, Bangladesh, Pakistan, Nepal, and the Philippines. |
| Key Reforms | ✅ Freedom to change jobs✅ Freedom to leave/re-enter Saudi Arabia✅ Legal protections and digital tracking system✅ Ban on passport confiscation |
| Who Benefits Most | Low and middle-income migrant workers in construction, domestic work, and industrial sectors. |
| Who Faces Challenges | Some employers (kafeels) who previously had full control over workers now lose that authority. |
| Government Objective | Under Vision 2030, to improve labor rights, diversify the economy, and enhance human rights image. |
| Effective Date | 2025, with HRSD monitoring enforcement. |
| International Response | Praised by Human Rights Watch, ILO, Times of India, and other organizations as a historic labor reform. |
| Future Implications | Better job market, more foreign investment, and labor reforms in GCC countries inspired by Saudi Arabia. |
| Stakeholder | Benefits | Losses / Challenges |
|---|---|---|
| Migrant Workers | Freedom to change jobs, passport control removed, legal protection | Minimal; only transition period adjustments |
| Employers (Kafeel) | Easier retention of skilled workers, transparent contracts | Less control over labor, old contracts may change |
| Government | Stronger international image, Vision 2030 goals, attract investment | Initial monitoring and administrative costs |
| Society | Transparent and humane labor system | End of traditional employer-dominated structure |
In Short (Quick Read):
Saudi Arabia has ended the Kafala system in 2025, giving migrant workers freedom, rights, and dignity. Workers can now change jobs and leave the country without employer permission, making this a historic labor reform under Vision 2030 that affects 13 million lives
