Saudi Arabia ends Kafala system: What it was, why it was dubbed ‘modern slavery,’ and how it will benefit millions of foreign workers? Explained

Saudi Arabia has finally ended its much-criticised “Kafala” sponsorship system. The decision, announced in June 2025, brings to a close a 50-year-old system that left foreign workers with complete control in the hands of employers.

This is a big thing for the about 13 million migrant labourers in the kingdom, who are from countries such as India, Bangladesh, Nepal, and the Philippines. Their lives were shaped by this one system for decades. Now, as part of a grand modernisation initiative called Vision 2030, they are promised greater freedom and dignity.

What was the Kafala system

“Kafala” is the Arabic word that means “sponsorship.” The system was established in the 1950s when oil-rich Gulf countries needed a lot of low-cost labour to construct their cities and oil industries.

This is