In a historic move, the decades-old Kafala (sponsorship) system in Saudi Arabia has officially come to an end, giving about 13 million foreign workers more freedom and legal rights.

Announced in June 2025, the decision constitutes a major change in the Kingdom's labour market and is in line with the Crown Prince Mohammed bin Salman's Vision 2030 goals of improving human rights and modernising the economy.

What was the Kafala System?

Kafala, which translates to "sponsorship" in Arabic, has been the term most commonly associated with the power imbalance between migrant workers and their employers.

The Kafala system, developed in the 1950s, associated the status of the job and the legal residency of migrant workers with the local employer or sponsor (kafeel). The system empowered employ

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