Saudi Arabia Abolishes Kafala System

Saudi Arabia has officially abolished its 50-year-old Kafala system, a controversial labor sponsorship framework that tied migrant workers' residency and employment to individual employers. This historic reform, announced in June 2025, is part of Crown Prince Mohammed bin Salman's Vision 2030 agenda, aiming to modernize the economy and improve the kingdom's international image. The change will directly affect approximately 13 million foreign workers, primarily from South and Southeast Asia, including India, Bangladesh, Nepal, and the Philippines. Under the new contract-based framework, migrant workers will gain the right to change jobs without employer permission, leave the country freely without exit visas, and access formal legal protections. Human rights groups and the International Labour Organization had long criticized the Kafala system as 'modern-day slavery' due to widespread exploitation, withheld wages, and restricted freedoms. The reform is expected to reduce exploitation, improve working conditions, and provide workers with greater agency and dignity, aligning Saudi Arabia's labor laws with international standards.