In a landmark decision, Saudi Arabia has officially abolished its decades-old Kafala system, a controversial labour sponsorship framework that governed the lives of millions of foreign workers for more than seven decades.

Announced in June 2025, the reform marks a historic step toward enhancing migrant welfare and labour rights across the kingdom. The move is expected to directly benefit around 13 million migrant workers, most of whom come from South and Southeast Asia.

What is Kafala?

The term Kafala , derived from Arabic meaning “sponsorship", had long symbolised an unequal power dynamic between employers and migrant employees. Introduced in the 1950s, the system was initially intended to regulate the influx of foreign labour during the Gulf’s oil boom. Under this model, each wo

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