Saudi Arabia Ends Kafala System

• Saudi Arabia has officially ended the Kafala (sponsorship) system , a major shift in the country’s labour laws under Crown Prince Mohammed bin Salman’s Vision 2030 plan. The decades-old system, introduced in the 1950s, had faced global criticism for enabling worker exploitation and limiting employee freedom.

Key Points

End of the Kafala System:
The Kafala system bound migrant workers to local sponsors, giving employers significant control over their movement, job transfers, and ability to leave the country. Its removal marks the end of widespread abuse, including passport confiscation and labour restrictions.

Impact and Scope:
This reform will benefit around 13 million migrant workers in Saudi Arabia, including nearly 2.5 million Indians . Across the Gulf region, around 25 million migrant workers —7.5 million from India—remain under similar systems in nations such as Kuwait, Oman, Qatar, and Lebanon .

Regional and Global Context:
Saudi Arabia’s move follows earlier reforms in Bahrain (2009) and Israel , both of which scrapped their sponsorship models. The change comes after years of pressure from international human rights and labour organisations , including Amnesty International and the International Labour Organization (ILO) .

Link to Vision 2030:
Ending Kafala supports Saudi Arabia’s broader goal of modernising its economy and improving its international reputation , especially as it prepares to host global events like the 2029 Asian Winter Games .

Challenges Ahead:
Experts warn that strong enforcement and monitoring will be essential to ensure real progress. Without effective oversight, loopholes could allow exploitative practices to continue under different names.

GK Facts

• The Kafala system began in the 1950s to manage foreign labour in Gulf countries.

• Over 10% of the global migrant workforce is employed in GCC nations .

• India sends more than 8 million workers annually to the Gulf region.

• Bahrain was the first Gulf nation to abolish Kafala in 2009 .

In summary: Saudi Arabia’s decision to abolish the Kafala system marks a significant step toward improving migrant worker rights and aligns with its broader vision of economic reform and global integration.