Saudi Arabia has abolished its decades-old Kafala system, a labour sponsorship model that controlled the lives and rights of millions of foreign workers. The decision, announced in June 2025, marks a historic step toward improving migrant welfare and labour rights in the kingdom. The reform is expected to benefit around 13 million migrant workers, mostly from South and Southeast Asia.

The word Kafala, derived from Arabic for "sponsorship," came to represent an entire way of life in the Gulf -- one where employers had near-total control over their employees, deciding whether they could change jobs, leave the country, or even seek legal help.

Introduced in the 1950s, the Kafala system was originally designed to manage the flow of cheap foreign labour needed to build oil-rich Gulf economies

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