Saudi Arabia has officially abolished its decades-old Kafala (sponsorship) system as part of Crown Prince Mohammed bin Salman’s Vision 2030 initiative.
Under the new rules, foreign workers can now change jobs without employer permission and leave the country without requiring an exit visa.
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What Was the Kafala System?
Introduced in the 1950s across Gulf nations, the Kafala (sponsorship) system tied a migrant worker’s legal residency and employment status directly to their employer, known as the kafeel. This arrangement gave employers full control over workers — including the power to prevent them from changing jobs or leaving the country.
Although originally intended to regulate the growing foreign labor force, Kafala gradually became a source of exploitation, with widespread reports of passport confiscation, withheld wages, restricted movement, and limited legal recourse. International rights groups have long criticized it as a form of modern-day slavery, urging Gulf states to dismantle the system.
What Changes Under Vision 2030?
Saudi Arabia’s labor reforms replace the sponsorship model with a contract-based employment system, giving migrant workers more autonomy and legal safeguards. Under the new framework:
- Workers can change employers upon contract completion or after notifying their current employer.
- Migrants can exit Saudi Arabia without an exit visa or sponsor consent.
- Labor courts are strengthened to allow workers to report violations or abuses more effectively.
Impact on South Asian Migrant Workers
The reform carries immense significance for millions of workers from India, Pakistan, Bangladesh, Nepal, and the Philippines, who make up a large share of Saudi Arabia’s labor force in sectors like construction, domestic service, and hospitality.