Saudi Arabia to Abolish ‘Kafala’ Sponsorship System

Saudi Arabia to Abolish ‘Kafala’ Sponsorship System

In a landmark move, Saudi Arabia is set to abolish the sponsorship system effective from the first half of the next year. More than one million expatriates are expected to benefit from the move, according to a report in Maaal online business daily.

Saudi Ministry of Human Resources and Social Development will make the official announcement in this regard in the coming week. The historic initiative is aimed at improving the contractual relationship between expatriate workers and their employers.

The sponsorship system, which has been in force for around seven decades, will be replaced by a work contract that regulates the relationship between employers and foreign workers. The current system, also known as the kafala system, ties workers to their employers, or sponsors, who are responsible for the employees' visa and legal