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Saudi Arabia Abolishes Kafala System to Enhance Worker Rights
Saudi Arabia ends the kafala system, a significant reform to enhance worker rights and economic opportunity for millions.
Riyadh, Saudi Arabia — Saudi Arabia officially ended the kafala system on October 24, 2025, a significant move aimed at strengthening worker rights. This reform is expected to positively impact millions of foreign workers in the kingdom.
This change matters because the kafala system has long been criticized for fostering exploitation and limiting workers’ rights. By abolishing this system, Saudi Arabia aims to improve working conditions and attract a broader talent pool. According to data from the international Labour Organization, around 9 million foreign workers in Saudi Arabia will benefit from greater employment protections and mobility options[1].
The kafala system, implemented in the 1970s, tied workers’ legal residency to their employers, leading to widespread abuse. According to a 2024 report by Human Rights Watch, 67% of foreign workers reported facing issues such as delayed wages and lack of access to legal recourse[2]. A labor policy expert, stated, “This reform marks a pivotal moment in labor rights within the Gulf region, potentially setting a precedent for other countries to follow.”
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Read More →This change matters because the kafala system has long been criticized for fostering exploitation and limiting workers’ rights.
The abolition of the kafala system comes at a time when Saudi Arabia is undergoing significant economic transformation under its Vision 2030 initiative. This strategy aims to diversify the economy beyond oil dependence, with projected growth rates of 4% annually through 2030. The labor market reform aligns with the kingdom’s goal to create 1.2 million new jobs for Saudi nationals and improve the overall investment climate[3].
Nevertheless, the transition away from the kafala system raises questions about enforcement and the implementation of new labor laws. Critics argue that without effective oversight, the potential for exploitation could still exist. “While the policy shift is encouraging, the real challenge lies in ensuring that these reforms are enforced and that workers feel safe to report abuses,” said a labor rights activist.
In response, the Saudi government has pledged to establish a new regulatory framework to monitor labor practices and ensure compliance. This includes setting up a dedicated agency to handle worker grievances and promote awareness of workers’ rights among foreign nationals. While this initiative is a positive step, its success will depend heavily on the government’s commitment to transparency and accountability.
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Read More →Looking ahead, the global implications of this reform could resonate beyond Saudi Arabia. If successful, it could encourage similar reforms across the Middle East, where many nations still operate under outdated labor systems. The shift may also enhance Saudi Arabia’s reputation as a competitive destination for skilled labor, inviting international firms to invest in the region.
As companies and workers alike adapt to these changes, the focus will be on building a more equitable labor market that supports economic growth while safeguarding the rights of all employees. This pivotal moment in labor rights could reshape the future of work in the region, fostering opportunities that were previously unimaginable.
