Saudi Arabia abolishes 'Kafala System' after 50 years; What was it and how it will grant new freedom to millions of foreign workers?

Saudi Arabia's abolition of the kafala system will transform the working lives of approximately 13 million foreign workers.

New Delhi: Saudi Arabia has officially abolished the 50-year-old Kafala system. This was a labor sponsorship framework that tied foreign workers’ living and employment rights to a single company or employer. According to a TOI report, this change was announced in June 2025, but it has now been officially abolished. The abolition of the Kafala system has liberated more than 13 million foreign workers, including millions from India.

What was the Kafala System?

The Kafala system, known as ‘sponsorship’ in Arabic, was a modern sponsorship route that has been in use in Gulf countries since the 1950s. The Kafala system is common in countries like Saudi Arabia, Qatar, Ku