Saudi Arabia Scrapped its 50 year old Kafala System

Team BookMyUmrahTrip
The 'Kafala system' was an agreement of sponsorship employment that bound migrant workers to their employers and was officially removed in Saudi Arabia in the month of October 2025.
What is the Kafala system?
The Kafala system is a sponsorship based system. For many decades this system has been in practice across Gulf countries like Saudi Arabia. The word “kafala” in Arabic means guardianship.
Under this system
The foreign workers do not have the authority to leave or change their jobs without their employer’s (kafeel) permission.
Their visa, employment, and even their ability to travel outside the country are all under the kafeel’s control.
The system gave employers immense power over workers’ lives, which made it more than just a typical job arrangement.
The Kafala system started in the 1950s, when the Gulf's oil boom meant that quickly growing economies needed foreign workers for big infrastructure projects. The system was meant to control migrant workers without making the government more complicated, but over time it created a big power imbalance.
Employers had the authority to take away workers' passports, limit their freedom of movement, and stop them from changing jobs. Human rights groups often compared these things to modern day slavery.
What does abolishing the Kafala system mean for Indians?
The historic decision of Saudi Arabia to abolish the "Kafala system" will impact over 2 million Indian workers. Indian workers in every industry are impacted by this shift, which includes IT, domestic work, healthcare, construction, etc. They can travel freely and have more control over their work lives.
Indian workers in every industry are impacted by this shift, which includes IT, domestic work, healthcare, construction, etc. They can travel freely and have more control over their work lives.
For Indian workers, the dissolution of the law means
Improved job opportunity: After completion of the contractual commitments, it is possible for you to change jobs without a "No Objection Certificate" (NOC) from prior sponsors.


