Officially: Saudi Arabia Abolishes 'Kafala' System for Migrant Labors

On Wednesday, the Saudi Ministry of Human Resource and Social Development announced a new initiative aims to abolish the sponsorship system known as 'kafala', which was in place for the last 72 years, and replace it with a new form of contractual relationship between employers and expatriate workers

In a statement, the ministry added that the new plan allows foreign workers to change jobs by transferring their sponsorship from one employer to another, leave and re-enter the country and secure final exit visas without a necessary consent of their employer.

On his part, deputy Minister Abdullah bin Nasser Abuthnain said that the new initiative is scheduled to come into effect in March 2021, affecting potentially around a third of Saudi Arabia's total population, or approximately 10 million foreign workers in the kingdom.

https://twitter.com/HRSD_SA/status/1323913000395427840

“Through this initiative we aim to build an attractive labor market and improve the working environment through three main services.. available to all foreign workers in the private sector,” Abdullah bin Nasser Abuthunain noted.

Saudi Arabia, which chairs the Group of 20 major economies (G20) this year, is seeking to boost its private sector, part of a plan to persify its economy.

The move will help attract high-skilled workers and help achieve Vision 2030 objectives, Abuthunain added.

Saudi Arabia’s Vision 2030 reform plan is a package of economic and social policies designed to free the kingdom from reliance on oil exports.

Currently more than 10 million foreign workers live in Saudi Arabia under the kafala system that requires them to be sponsored by a Saudi employer and be issued an exit/re-entry visa whenever they want to leave the country.