Saudi Arabia Abolishes Kafala Sponsorship System in Landmark Reform for Migrant Workers
Reform affects around 13 million foreign workers and grants greater job mobility and travel rights, including for over 2.6 million Indians
Saudi Arabia has officially dismantled its decades-old kafala (sponsorship) system, replacing it with a contract-based employment framework that grants migrant workers greater autonomy over their jobs and travel.
The reform, announced in June 2025 and broadly implemented by October, affects an estimated 13 million foreign workers, including more than 2.6 million Indian nationals.
Under the former system, migrant employees were tied to a local sponsor (kafeel) who controlled their visa, job changes and exit permissions.
This arrangement often restricted workers’ mobility, left them vulnerable to abuse, and has long been criticized by international labour organisations.
Key changes introduced by the reform include the right to change employers after contract expiry without requiring the current employer’s consent, elimination of the exit-visa requirement for many workers, and enhanced access to labour courts and legal complaint portals.
Migrants will also be able to retain their passports and travel more freely.
The move aligns with Vision 2030, Saudi Arabia’s national plan to diversify its economy and modernise labour governance.
By improving labour rights and mobility, the Kingdom aims to make itself a more attractive destination for global talent and investment.
While the reforms are widely welcomed, experts caution that effective enforcement remains crucial.
Domestic workers and other vulnerable groups were historically excluded from full protections, and ensuring real-world implementation will determine whether the changes yield genuine impact.
For Indian migrants, the reforms promise greater freedom, transparency and opportunity.
With India consistently ranking among the top sending countries of Gulf labour, the new framework could mark a significant improvement in bilateral labour relations and migrant welfare.
Saudi authorities emphasise that the reform is part of building a fairer and more competitive labour market.
The world will now monitor whether the promise of greater rights and dignity translates into practice on the ground for millions in the kingdom’s workforce.
The reform, announced in June 2025 and broadly implemented by October, affects an estimated 13 million foreign workers, including more than 2.6 million Indian nationals.
Under the former system, migrant employees were tied to a local sponsor (kafeel) who controlled their visa, job changes and exit permissions.
This arrangement often restricted workers’ mobility, left them vulnerable to abuse, and has long been criticized by international labour organisations.
Key changes introduced by the reform include the right to change employers after contract expiry without requiring the current employer’s consent, elimination of the exit-visa requirement for many workers, and enhanced access to labour courts and legal complaint portals.
Migrants will also be able to retain their passports and travel more freely.
The move aligns with Vision 2030, Saudi Arabia’s national plan to diversify its economy and modernise labour governance.
By improving labour rights and mobility, the Kingdom aims to make itself a more attractive destination for global talent and investment.
While the reforms are widely welcomed, experts caution that effective enforcement remains crucial.
Domestic workers and other vulnerable groups were historically excluded from full protections, and ensuring real-world implementation will determine whether the changes yield genuine impact.
For Indian migrants, the reforms promise greater freedom, transparency and opportunity.
With India consistently ranking among the top sending countries of Gulf labour, the new framework could mark a significant improvement in bilateral labour relations and migrant welfare.
Saudi authorities emphasise that the reform is part of building a fairer and more competitive labour market.
The world will now monitor whether the promise of greater rights and dignity translates into practice on the ground for millions in the kingdom’s workforce.