This move signifies a potential shift in Gulf labor practices, with hopes that other Gulf states may follow suit, though enforcement gaps pose challenges to the reforms' effectiveness.

The reform is viewed as a major step toward restoring basic rights for migrant workers and demonstrating Saudi Arabia’s commitment to modernization and human rights, though the true impact depends on effective implementation.

Saudi Arabia has officially abolished the 50-year-old Kafala system, a historic move impacting around 13 million migrant workers and marking a significant shift in labor rights in the country.

Announced in June 2025 and aligned with Crown Prince Mohammed bin Salman's Vision 2030, the abolition aims to diversify the economy, enhance Saudi Arabia's global image, and respond to international pressure.

Approximately 13.4 million migrant workers, mainly from Bangladesh and India, working in sectors like construction, domestic work, hospitality, and agriculture, are affected by these reforms.

The reform replaces the Kafala system with a contractual employment model, allowing workers to change jobs freely, leave the country without sponsor approval, and access improved legal protections, as part of Saudi Arabia’s Vision 2030 initiative.

Despite the legal changes, enforcement gaps remain, with some employers still demanding consent for job changes and controlling exit visas; vulnerable groups like domestic workers may not benefit equally.

The reforms aim to reduce exploitation, improve working conditions, and grant workers greater agency and dignity, marking a milestone in labor rights within Saudi Arabia and the Gulf region.

Critics and human rights organizations condemned the Kafala system for enabling forced labor, human trafficking, and abuse, especially in domestic, construction, and agriculture sectors.

Established in the 1950s, the Kafala system tied migrant workers' legal status to their employers, giving sponsors control over visas, job changes, and exit rights, often leading to exploitation.