Kathmandu: Saudi Arabia has officially ended its 70-year-old Kafala (sponsorship) system, a move expected to benefit more than 13 million foreign workers, according to the Associated Press (AP).
The landmark reform, first announced in June 2025, has now been formally implemented, marking a major shift in the country’s labor framework.
The decision will particularly impact migrant workers from India, Bangladesh, Nepal, and the Philippines, who make up the majority of Saudi Arabia’s foreign labor force.
Despite the reform in Saudi Arabia, the Kafala system continues to exist in other Middle Eastern countries, including the United Arab Emirates, Kuwait, Oman, Bahrain, Lebanon, and Jordan.
The system had long been criticized by international rights groups for giving employers excessive control over migrant workers, often leading to exploitation and abuse.